04-13-2004, 04:39 PM
Hey Guys and Gals...
I have this international relations class at school and one of the questions asks "what factors cause industrial countries to trade amongst themselves (remembering that 80% of trade in industrial countries is done with other wealthy countries)? What theory of trade does this contradict? Well, for you economists out there, I know that the theory is the factor proportions theory, but i don't know why industrial trade patterns contradcit the theory- can anyone help a lost political science student!!! greatly appreciated.
Thanks
I have this international relations class at school and one of the questions asks "what factors cause industrial countries to trade amongst themselves (remembering that 80% of trade in industrial countries is done with other wealthy countries)? What theory of trade does this contradict? Well, for you economists out there, I know that the theory is the factor proportions theory, but i don't know why industrial trade patterns contradcit the theory- can anyone help a lost political science student!!! greatly appreciated.
Thanks