Question

What factor(s) lead(s) to incomplete specialization?

Answer 1

The incomplete specialization solely depend on the factors like factor prices of the countries and the the factor endowment of the countries. Due to differ in factor prices with trade the equilibrium production leads higher production before it was in auterky situation. In the country where factor prices is comparatively lower and it has the facor endowment it will produce that good in which it has a facor intensity which is aailable and lower factor prices. Let suppose a conntry A , it has lower factor price i.e wage and it has facor endowment with labour. So the country will produce and incompltely specialized in that good whch has labour intensive production technology.