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Migration on relative price of labor-intensive good

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According to the Heckscher-Ohlin model with 2 goods and 2 factors (capital and labor), the movement of Mexican migrants to the US would increase the production of the labor-intensive goods in the US. True or False? Which theorem would you use to answer this question? Suppose the US is a closed economy. What should be the impact of this migration on the relative price of the labor-intensive good? What should happen to the relative and real reward of labor in the US?

Reference no: EM132906954

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