If poorer people consume a greater proportion of those products which are produced using a high intensity
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If poorer people consume a greater proportion of those products which are produced using a high intensity of unskilled labor (relative to physical and human capital), show that international trade between rich and poor countries will be lower than that predicted by the Heckscher-Ohlin theory.
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The HeckscherOhlin theory also known as the factor proportions theory is an economic theory that explains patterns of international trade based on the ...View the full answer
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