Econ 335

1. Heckscher-Ohlin theory, Stolper-Samuelson theorem, and opinions about free trade

Suppose Russia becomes a member of the World Trade Organization (WTO) and thus is more open to international trade. As a result, Russia's exports of wood products (which are intensive in land) and its imports of apparel (which are intensive in labor) both increase.

According to the Heckscher-Ohlin theory, Russia is abundant in--------------- .

Consistent with the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, which of the following groups in Russia will support its membership in the WTO?Check all that apply.

1-Workers in the apparel industry

2-Landowners in the wood product industry

3-Farmers

4-Workers in the wood product industry