The Heckscher-Ohlin Theory Predicts That the Opening of Trade Between

question 1

Multiple Choice

The Heckscher-Ohlin theory predicts that the opening of trade between a land-abundant country and a labor-abundant country should result in:

• A)higher rents and wages in both countries.
• B)lower rents and wages in both countries.
• C)higher rents in the labor-abundant country and higher wages in the land-abundant country.
• D)higher wages in the labor-abundant country and higher rents in the land-abundant country.

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Definitions:

Abstract

A summary of a research paper's contents, providing an overview of the study, results, and conclusions.

Reliance

Dependence on or trust in someone or something for support or help.

Denying

The action of declaring something to be untrue or rejecting the reality of a situation.

Formal Thought Processes

The capacity for abstract, logical, and systematic thinking, typically associated with the cognitive development in adolescence.