2. The Heckscher-Ohlin trade theory (30 marks) Create a digital learning object of Heckscher-Ohlin trade theory Part A: Theory and Assumptions (17 marks) 1. Provide a brief overview of the Heckscher-Ohlin trade theory, explaining its main principles and assumptions. (5 marks) 2. Discuss the concept of factor abundance, factor intensity, perfect competition, identical production technologies, and immobility of factors of production in the context of the Heckscher-Ohlin theory. (12 marks) Part B: Criticisms and Limitations (10 marks) 1. Identify and explain some of the main criticisms and limitations of the Heckscher-Ohlin theory. Consider factors such as transportation costs, economies of scale, and technological differences. Part C: Real-life example (14 marks) Choose a country, industry to examine the H-O trade theory and answer the following: 1. Describe the factor endowments of the chosen country or company, including the relative abundance of labor and capital. (6 marks) 2. Analyze how the Heckscher-Ohlin trade theory can explain the trade patterns observed in the example. (4 marks) 3. Discuss any contradictions between the predictions of the Heckscher-Ohlin theory and the actual trade patterns observed in the case study. Identify possible reasons for these deviations. (4 marks) Part 4: Policy Implications (10 marks) 1. Discuss how governments might use trade policies, such as tariffs or subsidies, to protect or enhance their domestic industries based on the Heckscher-Ohlin theory.