Starting from an Autarky (No- Trade)situation with Heckscher- Ohlin Model,if

question 28

Multiple Choice

Starting from an autarky (no- trade) situation with Heckscher- Ohlin model,if Country H is relatively labor abundant,then once trade begins

• A)wages should rise and rents should fall in H.
• B)rent will be unchanged but wages will rise in H.
• C)wages and rents should rise in H.
• D)wages should fall and rents should rise in H.
• E)wages and rents should fall in H.

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Definitions:

Create Value

The process of enhancing a product or service's worth by improving its appeal to customers, thereby increasing its market value or consumer demand.

Demand Curve

Shows how many units of a product or service consumers will demand during a specific period at different prices.

Prestige Products

Goods that are considered luxury items and signify a status symbol to consumers.

Higher Prices

Charging more for goods or services, often due to increased demand, higher costs of production, or added value.