6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant? Briefly explain.b....

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6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant? Briefly explain.b. What is the impact of opening trade on the real wage in Russia?c. What is the impact of opening trade on the real rental on capital?d. Which group (capital owner or labor) would support polices to limit free trade? Briefly explain

Answered Same DayDec 22, 2021

Answer To: 6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According...

David answered on Dec 22 2021

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6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.
a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant?
Briefly explain.
Answer:
As per Heckscher-Ohlin theorem, a capital abundant country will import labor-intensive good
and a labor abundant-country will import capital-intensive good.
Since here Russia is...

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6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant? Briefly explain.b....

Answer To: 6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According...

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