International Economics 14th Edition by Thomas Pugel

Exercise 8

Which of the following can lead to a reversal of the country's trade pattern (that is, a shift in which a previously exported good becomes an imported good, or a previously imported good becomes an export good) Consider each separately. Explain each.
a. Growth in the country's total supply (endowment) of the factor that is initially scarce in the country.
b. International diffusion of technology.
c. Shifting tastes of the country's consumers.