Suppose That the Home Country in the Two­sector

question 21

Multiple Choice

Suppose that the Home country in the two­sector
(manufacturing and agriculture) specific­factors model
Has a comparative advantage in manufacturing output.
What will happen to the return (rental) on capital when
Trade occurs?

• A)It will fall.
• B)It will rise.
• C)It will not change.
• D)It will first fall, then rise.

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Definitions:

Commercial Impracticability

A doctrine in contract law allowing parties to be discharged from their obligations when unforeseen events greatly increase the difficulty of performance.

Frustration of Purpose

A legal doctrine allowing for the termination of a contract when an unforeseen event undermines the contract's core purpose, making its performance impossible or radically different.

Nondisclosure Agreements

Legal contracts that prohibit parties from sharing confidential information disclosed during the course of business engagements.

Sexual Harassment

An unwelcome behavior of a sexual nature that creates an intimidating, hostile, or offensive work environment.