trade, the international price of one unit of steel is two units of wheat. In response to the opening of trade, the United States moves along its production-possibility curve to a new point where it produces thirty units of steel and ten units of wheat. Is the United States better off following the opening of trade? Provide a logical proof of your answer. e. After the North American Free Trade Agreement (NAFTA) was signed, trade restrictions among Canada, the United States, and Mexico were eased and cross-border trade increased. What predictions would the Heckscher-Ohlin model make concerning output changes in labor-intensive industries such as textiles in both Mexico and the United States and in capital-intensive industries such as steel in both Mexico and the United States, as a result of NAFTA? this problem you will use the World Development