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    International Economics Study Set 10
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    Exam 4: Trade and Resources: the Heckscher-Ohlin Model
  5. Question
    Assume That Home Is Relatively Abundant in Labor and
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Assume That Home Is Relatively Abundant in Labor and

Question 34

Question 34

Multiple Choice

Assume that Home is relatively abundant in labor and
Relatively scarce in land.The Heckscher­Ohlin model
Predicts that trade with other countries will cause increased
Returns to:


A) Home's labor.
B) Home's land.
C) neither both Home's labor nor land.
D) both Home's labor and land.

Correct Answer:

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