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Suppose the US and Brazil both make computers and shoes. Computers are capital intensive, and the...

Suppose the US and Brazil both make computers and shoes. Computers are capital intensive, and the U.S. is capital abundant relative to Brazil. Using the Heckscher-Ohlin model, carefully explain what will happen when both countries trade with each other (your answer should include graphs). Who will be the winners and losers in each country? Why?

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Rahul Sunny answered 2 years ago
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