When One Applies the Heckscher-Ohlin Model of Trade to the Issue

question 1

Multiple Choice

When one applies the Heckscher-Ohlin model of trade to the issue of trade-related income redistributions,one must conclude that North South trade,such as U.S.-Mexico trade,

• A) must help low skill workers on both sides of the border.
• B) is likely to hurt high-skilled workers in the U.S.
• C) is likely to involve higher overall national economic gains that will be greater than any harm done to low-skilled workers in the U.S.
• D) is likely to hurt low-skilled workers in Mexico.
• E) gives no advantage to the workers in either country.

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Definitions:

Saturated Fat

A type of dietary fat found in animal products and some plant oils, known to raise cholesterol levels and increase heart disease risk.

Nonnutritive Sweeteners

Artificial or natural sweeteners that provide little to no nutritional value but add sweetness to foods and drinks.

Total Fat Intake

The total amount of fat consumed in one's diet over a specified period.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, beneficial for health.