Suppose that a relatively capital-abundant country is exporting the capital-intensive good and importing the labor-intensive good, but that the "specific-factors" model of Chapter 8 applies rather than the Heckscher-Ohlin model. Assess the effect on the return to labor of the imposition of a tariff on the labor-intensive good.

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The Answer of Suppose that a relatively capital-abundant country is exporting the capital-intensive good and importing the labor-intensive good, but that the "specific-factors" model of Chapter 8 applies rather than the Heckscher-Ohlin model. Assess the effect on the return to labor of the imposition of a tariff on the labor-intensive good.

Suppose That a Relatively Capital-Abundant Country Is Exporting the Capital-Intensive