Exam 4: Comparative Advantage and Factor Endowments

Use the table for the following question Suppose that all goods are made with two factors-labor and capital. The table below shows the total endowments of each factor in the United States and Canada. Table 4.1 Endowment of Labor and Capital -Based on Table 4.1,according to the Heckscher-Ohlin Theorem,U.S.exports should be goods that

OLI theory is a direct contradiction of trade theory,especially trade theory based on comparative advantage.

Using the specific factors model,assume that strawberry production requires the specific factor of land,tractor production requires the specific factor of capital,and labor is variable.If the United States is capital abundant compared to Mexico,and Mexico is land abundant compared to the United States,then in the short run with trade we would expect

If the case study on U.S./ China trade is correct in its analysis of factor abundance,

According to OLI theory,a firm might be unwilling to license its production to a foreign firm for fear that its technology may be stolen or its brand name harmed,which leads the firm to internalize control over its asset and set up its own foreign subsidiary.

How would the opening of trade affect the incomes of workers in the U.S.and China? Use the case studies in the chapter on U.S.trade with China to support your answer.

Forces inside a nation that cause people to think about leaving that nation are called what in migration theory?