The Ricardian theory of international trade emphasizes that trade arises due to differences in labor productivity across countries. What is the primary determinant of comparative advantage in this classic model?

Which of the following is NOT a commonly proposed explanation for the Leontief Paradox?

In relation to the Heckscher-Ohlin theory, in comparison between countries X and Y, which of the following statements are true? a) Country X is capital-abundant if the relative price of capital in X is lower than in Y. b) Country X is capital-abundant if the relative price of capital in X is higher than in Y. c) Country Y is capital-abundant if the relative price of capital in Y is lower than in X. d) Country Y is capital-abundant if the relative price of capital in Y is higher than in X.