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Suppose that a relatively capital-abundant country is exporting the capital- intensive good and importing the labor-intensive...

Suppose that a relatively capital-abundant country is exporting the capital- intensive good and importing the labor-intensive good, but that the “specific- factors” model of Chapter 8 applies rather than the Heckscher-Ohlin model. Assess the effect on the return to labor of the imposition of a tariff on the labor- intensive good.

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Rahul Sunny answered 2 years ago
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