If a scale economy is the dominant technological factor defining ...

[yoroshambo]

If a scale economy is the dominant technological factor defining or establishing comparative advantage, then the underlying facts explaining why a particular country dominates world markets in some product may be pure chance, or historical accident.
 
  Explain, and compare this with the answer you would give for the Heckscher-Ohlin model of comparative advantage.

Question 2

The WTO encourages nations to take unilateral action on trade issues, including issues involving environmental protection.
 
  Indicate whether the statement is true or false

[Liddy]

Answer to Question 1

This statement is true, since the reason the seller is a monopolist may be that it happened to have been the first to produce this product in this country. It may have no connection to any supply or demand related factors; nor to any natural or man-made availability. This is all exactly the opposite of the Heckscher-Ohlin Neo-Classical model's explanation of the determinants of comparative advantage.

Answer to Question 2

FALSE

[yoroshambo]

Excellent

[kishoreddi]

Thanks for the timely response, appreciate it