Multiple Choice
Suppose that Home is a capital-abundant country. When Home trades with Foreign, a labor-abundant country, the Heckscher-Ohlin model predicts that the price of:
A) the labor-intensive good will rise in Home.
B) the labor-intensive good will rise in Foreign.
C) the capital-intensive good will rise in Foreign.
D) the capital-intensive good will fall in Home.
Correct Answer:
Verified
Correct Answer:
Verified
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