Which theory explains how international trade affects factor prices?
A) the Leontief paradox
B) the factor-proportions theory
C) the Stopler-Samuelson theory
D) the factor-price equalization theory
E) the trade normalization theory.
Correct Answer:
Verified
Q32: The effect of international trade on the
Q33: Assume that there are two factors, capital
Q34: In the factor-proportions theory, international trade tends
Q35: If a capital-abundant country freely trades with
Q36: International trade tends to:
A) have no effect
Q38: Factor-price equalization means that:
A) trade will have
Q39: Industrial structure refers to:
A) the percentage of
Q40: Changes in industrial structure:
A) cause changes in
Q41: Suppose that Ecuador is a labor-abundant country
Q42: Assume that Mexico is labor abundant and
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