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Carefully Explain, for Each of the Following Two Statements, Why

question 3

Essay

Carefully explain, for each of the following two statements, why the statement is either TRUE or FALSE.
(a) "In a 2x2x2 Heckscher-Ohlin context, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import-competing industry decreases and the real return to capital in the export industry also decreases."
(b) "In the 'specific-factors model,' with capital fixed in each sector, when a relatively labor-abundant country moves from autarky to trade, the real return to capital in the import- competing industry decreases and the real return to capital in the export industry also decreases."


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Feral

Animals or plants that have returned to a wild state after being domesticated or cultivated.

Teknonymy

A form of naming convention wherein parents are referred to by the names of their children.

Honorific

A title or word implying or expressing high status, politeness, or respect.

Ancestral Clan

A social group defined by common ancestry, often characterized by shared cultural or religious practices and a recognized common heritage.

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