UGC-NET 2023 Question 51: Theories of international trade
Consider the following statements about the Specific Factors model of International Trade and say which are correct.
(A) Factors specific to the export sectors in each country gain from trade.
(B) Factors specific to the import-competing sectors in each country lose from trade.
(C) Mobile factors that can work in either sector may gain from trade.
(D) Mobile factors that can work in either sector may lose from trade.
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Theories of international trade has come up 151 times in 6 exams since 2006.
What this question tests
This question is on The Rybczynski theorem, specific factors and immiserising growth, part of Theories of international trade in International Economics.
Other results on how factor growth and factor mobility shape output and welfare.
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