4. Using the information in the chapter, suppose Home doubles in size, while Foreign remains the same.

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4. Using the information in the chapter, suppose Home doubles in size, while Foreign remains the same. Show that an equal proportional increase in capital and labor at Home will change the relative price of computers, wage, rental on capital, and the amount traded but not the pattern of trade.

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International Trade

ISBN: 9781429278447

3rd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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