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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