Stolper samuelson theorem

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Determine what does the Stolper-Samuelson theorem suggest in case of a country being opened to international trade?

Select one:
a. The relative price of the country's abundant factor of production will rise, and the relative price of the country's scarce factor of production will fall.
b. The relative price of the country's abundant factor of production will rise, and the relative price of the country's scarce factor of production will also rise.
c. The relative price of the country's abundant factor of production will fall, and the relative price of the country's scarce factor of production will rise.
d. The relative price of the country's abundant factor of production will fall, and the relative price of the country's scarce factor of production will also fall.

 

Reference no: EM1368138

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