The elasticities approach and the absorption approach are theories of the balance of trade that emphasize trade in real goods and have little to say about the capital account

Farmers can raise either goats or ostriches on their land. Which of the following would cause the supply of goats to decrease?

A) an increase in the demand for goats B) an increase in the price of ostrich feed C) a decrease in the price of goats D) an increase in the price of ostriches

What is the Heckscher-Ohlin theorem? Using the case studies in the chapter on U.S. trade with China describe the theory and the resulting trade patterns that would support it

What will be an ideal response?