There is an extensive literature in the Heckscher-Ohlin framework which considers trade, investment, factor flows and transfers, but the models to investigate these phenomenon are typically different. This paper shows that all of these can be analyzed in the same simple two-sector trade model. A...

The production-possibility frontier is strictly concave and negatively sloped if two commodities are produced according to linearly homogeneous, strictly quasi-concave production functions that use, with different intensities, two factors of production that are available in fixed supply. In this...