Question
Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in agricultural output. What will happen to the
Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in agricultural output. What will happen to the return (rental) on capital when trade occurs?
- a.It will rise.
- b.It will fall.
- c.It will not change.
- d.It will first fall, then rise.
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Public Administration And Law
Authors: David H Rosenbloom, Rosemary O'Leary, Joshua M Chanin
3rd Edition
1439803986, 9781439803981
