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A capital-abundant country.
A labor-abundant country. 10.
According the Heckscher-Ohlin model, the opening of trade between the United States and the
Rest of the World should cause the United States to export _______ and import _______.
both goods. 11.
In the long-run, following the opening of trade, a labor-abundant country will:
Employ less labor than it did pre-trade.
Produce goods using a higher land to labor ratio than it did pre-trade.
Produce goods using a lower land to labor ratio than it did pre-trade.
Experience higher rents and wages. 12.
The opening of trade between a land-abundant country and a labor-abundant country should lead
Higher rents and wages in both countries.
Lower rents and wages in both countries.
Higher rents in the labor-abundant country and higher wages in the land-abundant
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This note was uploaded on 02/15/2011 for the course FBE 462 at USC.