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Business, 24.04.2020 03:03 zachcochran2007

Using the specific factors model, assume that strawberry production requires the specific factor of land, tractor production requires the specific factor of capital, and labor is variable. If the United States is capital abundant compared to Mexico, and Mexico is land abundant compared to the United States, then in the short run with trade we would expect

a. the income of Mexican workers to increase.
b. the income of U. S. workers to increase.
c. the income of Mexican land owners to increase
d. the income of U. S. land owners to increase.
e. no change in income of workers or land owners in US and Mexico.

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