ECON 351 - Consider the Heckscher-Ohlin-Samuelson model
Question # 00546322
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Updated on: 06/14/2017 06:19 AM Due on: 06/14/2017

Consider the Heckscher-Ohlin-Samuelson model for the US producing 2 goods (digital cameras and baskets) using 2 factors (capital and labor). Let the production of digital cameras be relatively capital-intensive. If foreign owners of domestic capital decide to decrease their investment in the US, how would that affect the output in each industry?

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Solution: ECON 351 - Consider the Heckscher-Ohlin-Samuelson model