5. Using a diagram similar to Figure 4-12, show the effect of a decrease in the relative...

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5. Using a diagram similar to Figure 4-12, show the effect of a decrease in the relative price of computers in Foreign. What happens to the wage relative to the rental? Is there an increase in the labor–capital ratio in each industry? Explain.

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International Trade

ISBN: 9781429278447

3rd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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