Qsuppose when russia opens to trade which introduced

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Q. Suppose when Russia opens to trade which introduced automobiles, a capital-intensive good.

a. According to the Heckscher-Ohlin theorem is Russia labor-abundant or capital-abundant? Briefly explain.

b. What is the impact of opening trade on the real wage in Russia?

c. What is the impact of opening trade on the real rental on capital?

d. Which group (capital owner or labor) would support policies to limit free trade? Briefly explain.

Reference no: EM13354315

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