Trade will tend to increase wages in a labor-abundant country because the
A) supply of labor will increase.
B) supply of labor will decrease and the demand for labor will increase.
C) demand for labor will increase.
D) demand for labor will decrease.
E) supply of labor will decrease.
Correct Answer:
Verified
Q74: An implication of the Heckscher-Ohlin model is
Q75: Exhibit 29-4 Q76: Changes in comparative advantage over time from Q77: If the comparative advantage between Japan and Q78: The equilibrating of the price of labor Q80: If one country has a higher level Q81: Trade will tend to increase the cost Q82: Workers in countries with higher productivity will Q83: Suppose two countries have similar resources, capital, Q84: A country should specialize in the production![]()
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