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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Definitions:

Serotonin

A neurotransmitter that has a significant impact on mood, emotion, and sleep.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits or reduces the activity of neurons.

Sex Hormones

Chemical substances produced by the body that regulate sexual functions and characteristics, including estrogen, progesterone, and testosterone.

Gonads

Glands responsible for producing sex hormones and gametes, playing a crucial role in reproductive health and behavior.