A will see A
Subject:EconomicsPrice: Bought3
A will see A. the real rental price of capital stay the same. A. the real wage decrease. A the real rental price of capital decrease. A the real wage stay the same. A the real rental price of capital decrease. Question 13 2.3 pts 13. Suppose in the Heckscher-Ohlin framework that in countries A and B it takes aLx = 14 units of labor to make 1 unit of thile it takes aKX = 5 units of capital to make 1 unit of good X. Suppose also that it takes aLY = 18 units of labor to make 1 unit of Y while it takes aKY = 6 units of capital to make 1 unit of good Y. Suppose that in country A has KA = 150 units of capital and LA = 100 units of labor. Suppose also that country B has KB = 200 units of capital and L3 = 120 units of labor. Using this information, we can say that A country A has a comparative advantage in X. A country A will tend to move toward specialization in good Y and import good X if we move from autarky to free trade. A country A will see the relative price of X increase if we move from autarky to free trade. A country B has a comparative advantage in Y. A none of the other options.
