In terms of factor endowments, India is somewhat similar to other developing countries trading with the...

In terms of factor endowments, India is somewhat similar to other developing countries trading with the U.S.: they all are labor abundant and capital scarce. Now that India is also opening up to world trade, how would you expect this to affect the welfare of the U.S.? Illustrate your answer in a relative-demand-relative-supply diagram.

Expert Solution

Rahul Sunny answered 2 years ago

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