Question: Countries A and B have the same technology and trade with each other. In A there are 20 units of capital and 5 workers. In
Countries A and B have the same technology and trade with each other. In A there are 20 units of capital and 5 workers. In B there are 10 units of capital. Bis selling A labor-intensive goods (and, in return is buying capital-intensive goods from A) when they trade. For Heckscher-Ohlin model to explain this pattern of trade, what is the smallest number of workers B must have? Select one: a. Since A has more capital, no matter how many workers B has, H-O model always explains this pattern of trade. b.4 c. 3 d. 6
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