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Economics Homework Help
Question 3. Assume that you are employed by the Minister of Trade for a small country. With your recently gained knowledge of the Heckscher-Ohlin Model and the Stolper-Samuelson Theorem, hovw do you react to the following statements by your colleagues in business and government? a. Minister of Labor: "Since we are a very labor-abundant country, allowing free trade would lower wages making our people even poorer." b. Owner of an Export Firm: "Free trade would make every individual in the country better off."
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