If the case study on U.S./ China trade is correct in its analysis of factor abundance,
A)Chinese capital owners should see their income rise as trade increases.
B)U)S. skilled labor inputs should see their incomes fall as trade increases.
C)U)S. capital owners should see their income fall as trade increases.
D)Chinese unskilled labor should see their income rise as trade increases.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model, countries will export goods that use their abundant factors intensively. China, being abundant in unskilled labor, will see an increase in income for unskilled labor as trade increases.

If the Case Study on U