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What will international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor tend to according to the Heckscher-Ohlin model?



A. Widen or aggravate the income disparity between skilled and unskilled workers.
B. Reduce the income disparity between skilled and unskilled workers.
C. Lower the wages of both groups of workers.
D. Raise the wages of both groups of workers.
E. It depends on what good is produced with different categories of labor.

This question is part of model Quiz 4
Asked by Raghaaadboodai, Last updated: Jul 02, 2020

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John Smith

John Smith

Answered Mar 13, 2017

Widen or aggravate the income disparity between skilled and unskilled workers.
 

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