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According to the Krugman, Obstfeld, and Melitz interpretation of the Heckscher-Ohlin model, explain what happens to the real income of labor in terms of cloth
According to the Krugman, Obstfeld, and Melitz
interpretation of the Heckscher-Ohlin model, explain what happens to the real income of
labor in terms of cloth when the relative price
of cloth to food rises. Assume cloth is labor intensive. Is different from the result of such a change when using the specific factors model? Explain your answer.
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