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Suppose a country produces two products: roses and computers. Roses are labor intensive and computers are capital intensive. According to the Heckscher-Ohlin model, what would
Suppose a country produces two products: roses and computers. Roses are labor intensive and computers are capital intensive. According to the Heckscher-Ohlin model, what would be the outcome for income distribution and factor proportions used in production if the price of roses increased relative to computers. Name the theorem you will use to answer this question and draw the appropriate graph to illustrate the impact
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