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“Professionals and highly educated workers are more likely to oppose limits on free trade as compared with high-school–educated workers because they have a better understanding of international trade. ” Comment.

Category : International Economics | Answer: 1 5 Years Ago

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Answer: This statement is likely to be incorrect for the United States because the United States is relatively abundant in skilled labor as compared with trading partners such as China or India. Therefore, the Stolper-Samuelson theorem predicts that professionals and other skilled workers will gain in real earnings because the United States will export the goods that use intensively the factor of production it has in abundance (i. e. , skilled
labor).

5 Years Ago
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