Consider a hypothetical economy in which only computers and shoes are produced and in which computer production is capital intensive compared with shoe production. If two resources are being used, labor and capital, then any increase in immigration in the long run:

In the short-run (specific-factors) model, foreign direct investment is expected to cause a(n) ________in the production of the capital-intensive good and a(n) ________in the production of the land-intensive good in the receiving country.

Which of the following is one conclusion of the Heckscher-Ohline model?

In the Heckscher–Ohlin Model, as trade occurs in a capital-abundant country, increased imports will force domestic import-competing firms to decrease price and production. Labor and capital will move to exporting firms. What will then happen to wages and returns to capital?

(Figure: Home and Foreign Autarky Equilibria) H-O S and C(1).jpg According to the shapes of the two PPFs, which nation has a comparative advantage in the production of computers?

Latvia.jpg Refer to the above table. According to the Heckscher–Ohlin model, Latvia’s capital–labor ratios are consistent with:

The implication of resources being mobile domestically is that:

Leontief suggested that his results were not a paradox once we account for differences in:

relative demand(1).jpgRefer to the figure above: Economy-wide Relative Supply and Relative Demand for Labor. Assume computer industry is capital-intensive, and shirt industry is labor-intensive. Assume further that home country is capital abundant country. As trade is opened up,

The Heckscher–Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agriculture) using labor and capital. Which of the following is an additional assumption of the Heckscher–Ohlin model?