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:

National Park

A protected area, established by a national government, meant to preserve the natural environment for public enjoyment and ecological conservation.

Early Conservation Movement

A social and political effort initiated in the late 19th and early 20th centuries aimed at conserving natural resources and protecting the natural environment from destruction or degradation.

Nationwide Ridicule

Widespread mockery or scorn directed at a person, policy, or event across an entire country.

Statehood

The condition or status of being recognized as a sovereign state with an independent government and participation in international diplomacy.