How does the existence of demand reversal complicate

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Question: 1. How does the existence of demand reversal complicate the predictions of Heckscher-Ohlin?

2. Using the specific-factors model, explain why you might expect to see certain capital owners and labor groups arguing against expanding trade in a capital-abundant country.

3. Given your knowledge of the basis for trade, would you be surprised or not to learn that the composition of the exports and imports of a former Soviet bloc country such as Hungary or Poland changed with the dissolution of the Soviet Union and the opening of trade with the West? Explain your answer.

Reference no: EM132177967

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