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.
March 21, 2008
the heckscher- ohlin model question is below.. can anyone explain this question..? The Heckscher-Ohlin model assumes that tastes are the same in Home and Foreign. Suppose now that tastes are different in Home and Foreign. Is it possible for the capital intensive country to now...
March 20, 2008