Question: If U.S. tariffs and other trade barriers are placed more heavily on labor-intensive goods than on capital-intensive goods because of the H-O suggestion that the
If U.S. tariffs and other trade barriers are placed more heavily on labor-intensive goods than on capital-intensive goods because of the H-O suggestion that the scarce factor of production gains from protection, how do you explain why many developing countries also have relatively high import barriers on labor-intensive goods?
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These barriers may reflect the desire to engage in import substitution wi... View full answer
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