It is said that the law of comparative advantage (CA) is the most counterintuitive, yet the most compelling proposition in social sciences. Explain, with simple numerical examples(s) how the case for CA is counterintuitive as well as compelling. With s simple statement explain what the Hecksher-Ohlin (H-O) predicts about pattern of trade between countries. To what extent do the CA theory and H-O theory explain the rise of Ecuador's rose industry.
