Sources or Comparative Advantage Graded Assignment | Due Sunday 02.04.18 at 11:0

Question

Sources or Comparative Advantage Graded Assignment | Due Sunday 02.04.18 at 11:00 PM Keep the Highest: 3/5 Attempts: 0 3 4. Heckscher-Ohlin theory, Stolper-Samuelson theorem, and opinions about free trade Suppose Serbia becomes a member of the European Union. As a result, Serbla's exports of textiles, which are intensive in labor, and imports of wheat, which are intensive in land, both increase. According to the Heckscher-Ohilin theory, Serbla is abundant in both labor and land capital both labor and capital g groups in Serbia will Consistent with the Heckscher-Ohlin and Stolper-Samuelson the support its membership in the European Union? Check all that land Capital owners in wheat production consumers Capital owners in textile production Farmers Continue without saving

Explanation / Answer

Solution-

Serbia is abundant in Labor because they export textile and textile is Labor intensive Based and they have sufficient labor available at Minimum wage.

Capital owner of textile industry support member of European union because Serbia has sufficient labor for producing textile but the farmer of Serbia oppose the European Union.

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