When one applies the Heckscher- Ohlin model of trade to the issue of trade- related income redistributions,one must conclude that North- South trade,such as U.S.- Mexico trade,
A) is likely to hurt low- skilled workers in Mexico.
B) is likely to hurt high- skilled workers in the U.S.
C) is likely to involve higher overall national economic gains that will be greater than any harm done to low- skilled workers in the U.S.
D) gives no advantage to the workers in either country.
E) must help low- skilled workers on both sides of the border.
Correct Answer:
Verified
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