Answer all the questions on 5-6 pages

Answer all the questions on 5-6 pages
International Trade Theory and Policy
1) Explain the meaning of each of the three basic “theorems” of international trade theory; i.e. the “H-O”, “FPE” and “Stolper-Samuelson” (SS) models, including the assumptions under which the hold.
2) After WWII every economist was sure that the US was a relatively capital-abundant economy (having not been directly bombed during the war), but V. Leontiev cast doubt on this. Explain.
3) Suppose that the Production Possibilities Frontier (PPF) now expands. Explain:
a) the Rybczynski Theorem
b) the possibility of “immiserizing” growth
c) the “Metzler” paradox