Business
Business, 26.10.2021 03:20, ninaaforever

g Assume a two-country two-good two-input model where the following relationships hold: (K/L)U. S. > (K/L)ROW (K/L)automobiles > (K/L)shoes Where (K/L)U. S. is the capital-labor ratio in the United States, (K/L)ROW is the capital-labor ratio in the Rest of the World, (K/L)automobiles indicates the capital-labor ratio in the production of automobiles, and (K/L)shoes indicates the capital-labor ratio in the production of shoes. Assume further that technology and tastes are the same in the United States and the Rest of the World. If trade opens up between the United States and the Rest of the World, according to the Heckscher-Ohlin model, the Rest of the World will export and import .

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g Assume a two-country two-good two-input model where the following relationships hold: (K/L)U. S. &...

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