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Suppose That the Home Country in the Two-Sector (Manufacturing and Agriculture)

question 18

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Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Which specific factor will gain after trade occurs?


Definitions:

Conduct Water

The process by which water is transported throughout plants, particularly from roots to leaves, through structures like xylem vessels.

Minerals

Naturally occurring, inorganic substances with a definite chemical composition and crystalline structure.

Charophytes

A group of green algae thought to be the closest relatives of land plants.

Probable Ancestors

The most likely predecessors or early forms of living organisms from which others have descended.

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