-Refer to Above Figure

question 11

Essay

-Refer to above figure.If trade were to open up between P and R,where would the world terms of trade locate in the figure above (somewhere on the P_C/P_F axis)? Would relative wages (w/r)in the two countries become equal? Is this consistent with the Heckscher-Ohlin model? Explain.

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Definitions:

Affect

A term referring to the underlying experience of feeling, emotion, or mood.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Social Learning

The process of acquiring new behaviors and knowledge by observing and imitating others.

Modeling

The process of learning through the observation of others' behaviors, attitudes, or emotional expressions.