What happens to the ratio of the high-skilled wage

Reference no: EM133614564

Problem: Suppose we have a Heckscher-Ohlin-Samuelson model with two countries, H and F; two goods, X and Y; and two factors, S (high-skilled labour) and L (low-skilled labour). Consider the relative high-skilled labour demand and supply graph above and answer the questions below based on this graph. Which good will Country H export when it opens for trade with Country F? Justify your answer in a few sentences and state the name of the theorem you can use to make this prediction. What happens to the ratio of the high-skilled wage to the low-skilled wage in Country H when it opens for trade with Country F?

Reference no: EM133614564

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