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Business, 06.11.2019 23:31 haileygrace4154

Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the minimization of trade surpluses, whereas the comparative advantage theory focuses on the mercantilist idea that international trade is a zero-sum game accumulation of financial wealth in the form of gold by encouraging imports and discouraging exports, while the comparative advantage theory focuses on usage of the most abundant factors of production usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process productivity of the production process, while the comparative advantage theory focuses on maximization of production and consumption

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