Answer to Question #73988 in Microeconomics for Gongala
To prove the intra industry trade theory empirically which assumption has been altered as compared to the HOS model.
HOS emphasizes that countries will involve in exporting those products for the production of which their profuse resources are going to be used. On the other hand, intra – trade involves same industry products traded between countries (Markusen et al, 2000).
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