Question
In the Heckscher-Ohlin model, when two countries begin to trade with each other: Select one: O a. all factors in both countries will gain
In the Heckscher-Ohlin model, when two countries begin to trade with each other: Select one: O a. all factors in both countries will gain from trade. O b. all factors in one country will gain, but there may be no gains in the other country. O c. the relative prices of traded goods in the two countries converge. O d. benefits from trade are evenly distributed between the two countries. e. relative factor prices in the two countries diverge.
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The detailed answer for the above question is provided below Answer c The relative prices of traded goods in the two countries converge The HeckscherO...Get Instant Access to Expert-Tailored Solutions
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