(A) State the Rybczynski Theorem

question 8

Essay

(a) State the Rybczynski theorem. Then, in a two-factor, two-good Heckscher-Ohlin context, illustrate and explain the "production effect" of growth in the labor force in a relatively capital-abundant country, other things equal.
(b) In the situation of the labor force growth in part (a) above, suppose that the country is a "large" country. Define the meaning of a "large" country in international trade. Then, and assuming that the "net" or "overall" effect of the labor force growth in part (a) is of the same type as the "production effect," illustrate and explain, other things equal, the impact of that labor force growth on the country's willingness to trade and the country's terms of trade.
(c) Finally, define "immiserizing growth." Then very briefly explain how "immiserizing growth" could or could not happen in the situation of part (b) above.

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, is a manual published by the American Psychiatric Association that provides a standardized language and criteria for the classification of mental disorders.

Cluster System

In psychological testing or data analysis, a cluster system is a method used to group similar objects or individuals based on specific characteristics or qualities.

Paranoia

A mental condition marked by delusions of persecution or grandeur, often without a realistic basis.

Narcissism

A trait characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.