why gains and loses from trade in the short-run. (10pts) Heckscher-Ohlin Model: a) (2pts) State the Hecksher-Ohlin Theorem b) (2pts) State the Stopler-Samuelson Theorem c)
why gains and loses from trade in the short-run. (10pts) Heckscher-Ohlin Model: a) (2pts) State the Hecksher-Ohlin Theorem b) (2pts) State the Stopler-Samuelson Theorem c) (6pts) Use the following Numerical Example to prove the Stopler-Samuelson Theorem: Suppose the following for the production of Steel Sales Revenue = Ps*Qs= $250 Payments to labor = w*Ls=$100 Payments to capital = R*Ks=$150 Suppose the following for the production of Coats Sales Revenue - Pc*Qc-$250 Payments to labor = w*Lc=$150 Payment to capital = R*Kc=$100 Price of Coats increases by 20% and the Price of Steel stays the same
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