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

Question

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According to the Heckscher-Ohlin model, trade between countries with different relative factor endowments will cause a shift in production towards the factor that is relatively abundant in each country. In the case of North-South trade, the U.S. is relatively abundant in high-skilled labor, while Mexico is relatively abundant in low-skilled labor. Therefore, trade between the two countries is likely to lead to an increase in demand for high-skilled labor in Mexico and low-skilled labor in the U.S., which will hurt low-skilled workers in the U.S. and benefit low-skilled workers in Mexico. Therefore, the best choice is C, which states that North-South trade is likely to hurt low-skilled workers in the U.S.

When One Applies the Heckscher-Ohlin Model of Trade to the Issue