Question
Consider Vietnam, a small labour-abundant country. Please analyse how capital inflow from China will affect its trade, using the Heckscher-Ohlin model and Rybczynski theorem.
Consider Vietnam, a small labour-abundant country. Please analyse how capital inflow from China will affect its trade, using the Heckscher-Ohlin model and Rybczynski theorem. Will the immeserising growth be likely to happen in this scenario? And how would this capital movement affect labour earnings? Use graphs to support your answer.
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