Suppose that all countries eliminate their barriers to trade. The HeckscherOhlin model predicts that:
a. wages should become more equal throughout the world.
b. wages should become more unequal throughout the world.
c. the volume of international trade should fall.
d. there should be increased migration of labor among countries.
Ans: a. wages should become more equal throughout the world.
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From the nineteenth century until the 1930s, the United states most consistently adhered to
A) the Bretton Woods system. B) a managed-float exchange rate system. C) a freely-floating exchange rate. D) the gold standard.
An advantage of a corporation is
A. the fact that ownership and control are never separated. B. the ability to raise large sums of financial capital. C. the fact that the corporation is dissolved when one of its owners dies. D. unlimited liability on the part of shareholders.