Multiple Choice
If relatively capital-abundant country A opens trade with relatively labor-abundant Country B and the trade takes place in accordance with the Heckscher-Ohlin theorem,What would be the consequence for factor prices (w/r) in the two countries?
A) (w/r) rises in A and falls in B
B) (w/r) rises in A and also rises in B
C) (w/r) falls in A and rises in B
D) (w/r) falls in A and also falls in B
Correct Answer:
Verified
Correct Answer:
Verified
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