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In the Context of the "Specific-Factors Model," Explain the Income

Question 7

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In the context of the "specific-factors model," explain the income distribution impacts within a relatively labor-abundant country of a movement from autarky to a situation of free trade. How and why are these impacts at variance with the impacts that would occur according to the Stolper-Samuelson theorem? Carefully explain.

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The specific-factors model is an economi...

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