REVIEW THE MAIN GRAPHS / TUTORIALOUTLET DOT COM

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REVIEW THE MAIN GRAPHS / TUTORIALOUTLET DOT COM
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REVIEW THE MAIN GRAPHS / TUTORIALOUTLET DOT COM

• Review the main graphs
• FOR MORE CLASSES VISIT
• www.tutorialoutlet.com
• Question 1. This question helps you review the
  main graphs of the
• Heckscher-Ohlin model. (10 points) Consider the
  following Heckscher-Ohlin model. There are two
  countries, Home and Foreign. They produce
  merchandise and service using skilled labor and
  unskilled labor.
• The Home country is skilled-labor abundant, and
  service is skilled-labor intensive. Consider the
  changes that take place in the Foreign country as
  it goes from closed economy to free trade. Assume
  that the price of service decreases while the
  price of merchandise remains unchanged.
• (1) Graph the relative demand curves for skilled
  labor for merchandise and service. Be sure to
  label your axes and label your curves. (Hint the
  vertical axis is skill premium, or
  skilled-labors wage relative to
  unskilled-labors wage. The horizontal axis is
  skilledlabor intensity, or skilled-labors
  employment relative to unskilled-labors
  employment.)

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REVIEW THE MAIN GRAPHS / TUTORIALOUTLET DOT COM
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