The Heckscher-Ohlin model predicts all of the following EXCEPT ...

[ec501234]

The Heckscher-Ohlin model predicts all of the following EXCEPT
 
  A) the volume of trade.
  B) which country will export which product.
  C) which factor of production within each country will gain from trade.
  D) that relative wages will tend to become equal in both trading countries.
  E) that trade increases a country's overall welfare.

Question 2

Refer to above figure. What happens to the Consumer Surplus of Hungarian customers as a result of this subsidy?
 
  What will be an ideal response?

[joechoochoy]

Answer to Question 1

A

Answer to Question 2

An increase of 10 Million.

[ec501234]

Thank you

[joechoochoy]

No problemo