In the Heckscher- Ohlin Model,when Two Countries Begin to Trade

question 9

Multiple Choice

In the Heckscher- Ohlin model,when two countries begin to trade with each other

• A)all factors in both countries will gain from trade.
• B)benefits from trade are evenly distributed between the two countries.
• C)relative factor prices in the two countries diverge.
• D)all factors in one country will gain,but there may be no gains in the other country.
• E)the relative prices of traded goods in the two countries converge.

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