3. How can external economies of scale make autarchy (no international trade) preferable to free trade? Why would such a situation not be compatible with the assumptions of the Heckscher-Ohlin theory, specifying which assumptions and which results of the Heckscher-Ohlin theory leads to such an incompatibility. 4. Discuss two topics which have been subjected to internationally agreed rules of the international trading system only following the Uruguay Round and briefly evaluate them from the point of view of developing countries.

Q&A Education