Considers the heckscher-ohlin-samuelson model

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Question

Considers the Heckscher-Ohlin-Samuelson model that we are studying. Suppose Country H is not trading and experiences an increase in its supply of labour. Use a PPF diagram to depict the effect of this shock on aggregate outputs and the autarky price ratio of shoes to computers. Provide intuition for the direction of the change in the outputs.

Reference no: EM133616616

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