How would this affect the status of Hong Kong as an international financial centre?

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Learning Goal: I’m working on a information economics writing question and need an explanation and answer to help me learn.
1. Suppose that the “expensive real estate market” and “geopolitical uncertainty” increase the
operating cost of financial service much more than other business (i.e. financial service is
more sensitive to rental expenditure and geopolitical uncertainty). How would this affect
the status of Hong Kong as an international financial centre according to the theories based
on comparative advantage such as Ricardian Model and Heckscher-Ohlin Model.
2.Ignoring the discussion in question 1. Suppose that the “expensive real estate market” and
“geopolitical uncertainty” significantly increase the operating cost of financial service, but
it also has a strong external economies of scale. How would this affect the status of Hong
Kong as an international financial centre?

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