In a closed economy a labor abundant country such as Indonesia would have low wages relative to capital rents and be a low opportunity cost producer of labor-intensive goods. A framework such as the HOS model predicts that as Indonesia opens to trade the REAL wages of laborers in that country should increase. Briefly, but as clearly as possible, explain in words the causal mechanisms that explain this result. Say the A sector is labor-intensive. Then the question is, when Pa/Pb rises, what happens next to explain the prediction. You can use bullet points (- or *), arrows ('-->' ) and brief phrases to keep your answer short but clear.
Answers: 2
Business, 21.06.2019 19:30, maddietomlinson113
The selling price of houses would be most likely to decrease if there were first a decrease in which of the following? a. new-housing construction. b. mortgage interest rates. c. the unemployment rate. d. construction workers' wages. 2b2t
Answers: 1
Business, 22.06.2019 00:30, ummmmmmmmmmmm
What are six resources for you decide which type of business to start and how to start it?
Answers: 3
In a closed economy a labor abundant country such as Indonesia would have low wages relative to capi...
History, 16.12.2021 18:50
Mathematics, 16.12.2021 18:50
Mathematics, 16.12.2021 18:50
Mathematics, 16.12.2021 18:50
English, 16.12.2021 18:50
Spanish, 16.12.2021 18:50