When One Applies the Heckscher-Ohlin Model of Trade to the Issue

question 31

Multiple Choice

When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions, one must conclude that North-South trade, such as U.S.-Mexico trade,

• A) must help low-skilled workers on both sides of the border.
• B) is likely to hurt high-skilled workers in the U.S.
• C) is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the U.S.
• D) is likely to hurt low-skilled workers in Mexico.
• E) gives no advantage to the workers in either country.

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Definitions:

Racism

Prejudice and discrimination based on race.

U.S. Government

The federal government of the United States, consisting of three branches: executive, legislative, and judicial.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Workplace

The physical or virtual location where individuals perform their job duties.