According to the HeckscherOhlin model, international trade for a nation with a relative abundance of skilled labor and a relative scarcity of unskilled labor will tend to

a. widen or aggravate the income disparity between skilled and unskilled workers.
b. reduce the income disparity between skilled and unskilled workers.
c. lower the wages of both groups of workers.
d. raise the wages of both groups of workers.


Ans: a. widen or aggravate the income disparity between skilled and unskilled workers.

Economics

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