Post a New Question


posted by .

Show graphically and explain how a policy that increases the productivity of the labor input in a labor abundant country affects the equilibrium terms of trade between that country and a capital intensive country (assume that L and K are the only inputs and that the countries trade 2 goods – X, a labor intensive good and Y a capital intensive good). You will need to use offer curves to answer this question.

Answer This Question

First Name
School Subject
Your Answer

Related Questions

More Related Questions

Post a New Question