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Chako Chako
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9 years ago
Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins
A) wages and rents should fall in H.
B) rent will be unchanged but wages will rise in H.
C) wages and rents should rise in H.
D) wages should fall and rents should rise in H.
E) wages should rise and rents should fall in H.
Textbook 
International Economics: Theory and Policy

International Economics: Theory and Policy


Edition: 10th
Author:
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wrote...
#1
9 years ago
E
Chako Author
wrote...
#2
9 years ago
Good answer, thank you
wrote...
#3
9 years ago
Good luck
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