Assume the Standard Trade Model with Two Countries (Alpha and Beta)

question 38

Multiple Choice

Assume the standard trade model with two countries (Alpha and Beta) , two goods (food and drink) , and two factors of production (land and labor) . Further assume that Alpha is relatively labor-abundant and drink is relatively labor-intensive. If the countries engage in free trade, the price of food will:

• A)rise in Alpha and fall in Beta.
• B)rise in both the countries.
• C)fall in both the countries.
• D)fall in Alpha and rise in Beta.

---

Definitions:

Spokesperson

A spokesperson is an individual appointed or designated to speak on behalf of an organization, group, or another person, particularly to the media or public.

Mediator

A neutral third-party who helps resolve disputes by facilitating communication between conflicting parties, aiming for a mutually acceptable agreement.

Organizational Change

The process through which a company or organization undergoes a transformation in its operations, structure, or culture to address internal and external challenges.

Mediator

An impartial individual or entity that intervenes in disputes or negotiations to facilitate an agreement or reconciliation between parties in conflict.