QUESTION7 Consider the specific factors model that we discussed in the class. There are two countries (Home and Foreign), two industries (Manufacturing and Agriculture) and three factors (labor, land and capital). Assume that Home has comparative advantage in Agriculture. Using a figure, show the impact of trade on earnings of labor, capital and land. Who will be in favor of trade and who will be against it? Attach File Browse Local Files Browse Content Collection
QUESTION7 Consider the specific factors model that we discussed in the class. There are two countries (Home and Foreign), two industries (Manufacturing and Agriculture) and three factors (labor, land and capital). Assume that Home has comparative advantage in Agriculture. Using a figure, show the impact of trade on earnings of labor, capital and land. Who will be in favor of trade and who will be against it? Attach File Browse Local Files Browse Content Collection
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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