Compendium and Petibonum have just started to trade with each other. Compendium exports goods produced with skilled labour and imports goods made with unskilled labour from Petibonum. Overtime, we would expect that the wages of skilled labour in Compendium will
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Theories of international trade has come up 151 times in 6 exams since 2006.
This question is on Factor price equalisation and the Stolper-Samuelson theorem, part of Theories of international trade in International Economics.
How trade changes returns to factors and whether it equalises them across countries.
TestStop has 12 past-paper questions on this subtopic.
Question from the JNU SIS 2015 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.