Which theory explains how international trade affects the distribution of income?
A) the Leontief paradox
B) the factor-proportions theory
C) the Stopler-Samuelson theory
D) the factor-price equalization theory
E) Mercantilism

Question

Quizplus · Accepted Answer

The Stopler-Samuelson theory explains how international trade affects the distribution of income by stating that trade benefits the owners of abundant factors and harms the owners of scarce factors in a country.

Which Theory Explains How International Trade Affects the Distribution of Income