Compare and contrast the different classical and modern trade theories.
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Compare and contrast the different classical and modern trade theories
Compare and contrast the different classical and modern trade theories.
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Answer:
(iv) The classical theory presents a one-factor (labour) model, while the modern theory presents a more realistic multi-factor (labour and capital) model. (v) The classical theory never took into account the factor price differences, while the modern theory considers factor price differences as the main .