plz when u write the answer plz make sure to write detial for me to understand the questionsand also clearfy and detail for the explain the chart diagram for both question .
MBA 5326
Sample questions for midterm
1. Consider the trade between a developing country and a developed country. The developing country is an unskilled labor abundant country while the developed country is a skilled labor abundant country. There are two goods a skilled labor intensive good (SLIG) and an unskilled labor intensive good (ULIG).
Choose two countries and two goods that satisfy the factor endowments and factor intensities described above
Using the Stolper-Samuelson theorem describe who will support and who will oppose free trade in your two countries. Use a flow chart diagram similar to the one I used in my Powerpoint slides to help you in your description and summarize the basic results of the Heckscher-Ohlin model.
2. Assume that South Korea is capital (K) abundant while Vietnam is unskilled labor (UL) abundant . Steel is capital intensive while Rice is unskilled labor intensive. Explain what happens to the returns to capital and unskilled labor after trade begins.
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