1. The Leontief paradox is based on empirical results that did not support the Heckscher-Ohlin theory. In the research behind the paradox, the United States imported more capital intensive goods than it exported, even though the United States is viewed as being more capital abundant and less labor abundant. Do you agree with how Leontief explained this paradox? Why, or why not? What other causes do you think might explain the finding? 175 word minimum
2. Think about the production in the city or regionĀ in which you live. What does your region produce that it exports to other areas? How have external economies of scale affected your area? 175 word minimum