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Multi-cone equilibrium
A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are multiple diversification cones. This, or a two cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.
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- Part of Speech: noun
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- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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