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 import the capital intensive good?
Briefly discuss the intuition, and then illustrate your answer using the PPF-indifference curve diagrams for Home and Foreign.
We continue to assume that Home is capital abundant and Foreign is labor abundant. They produce computers and shoes.
Computers are capital intensive and shoes are labor intensive.
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
Please help on the following question 2. (Heckscher- Ohlin Model) Suppose that Home produces computers (C) and Food (F) using skilled labour (S) and unskilled labour (L). The unit factor requirements for each industry are: aSC = 1
Heckscher- Ohlin Model 1. Suppose that Home produces computers (C) and Food (F) using skilled labour (S) and unskilled labour (L). The unit factor requirements for each industry are: aSC = 1 aSF = 1 aLC = 2 aLF = 4 (a)What good is
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