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Let's talk about the hitzler -olin model.
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This is the theory in international economics.
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It states, countries exports what they can most efficiently and plentifully produce.
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It emphasizes the interplay between the relative abundance of labor, capital, and other factors of production in determining trade patterns.
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Factor price structures refer to relative costs of labor, capital, and other factors of production.
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According to the actual model, a country will have comparative advantage in producing goods that intensely intensively use its relatively abundant and cheap factors of production.
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The challenges faced by developing and developed nations in achieving and maintaining comparative advantage are quite different.
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Developing nations struggle with issues such as lack of capital, poor infrastructure, and low levels of education and skills, as well as political instability.
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These factors make it difficult for them to develop industries and export goods in which they could potentially have comparative advantage.
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In developed nations, challenges include high labor costs, environment, environmental regulations and competition from low -cost producers in developing nations...