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Suppose That All Countries Eliminate Their Barriers to Trade

Question 24

Multiple Choice

Suppose that all countries eliminate their barriers to trade.
The Heckscher­Ohlin model predicts that:


A) wages should become more equal throughout the world.
B) wages should become more unequal throughout the world.
C) the volume of international trade should fall.
D) there should be increased migration of labor among countries.

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