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March 30, 2015

Homework Help: international trade

Posted by swan on Friday, March 21, 2008 at 1:42am.

Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.

According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain.

What is the impact of opening trade on the real wage in Russia? Briefly explain.

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