In the specific-factors model:
A) owners of the specific factor should be in favor of international trade in all cases.
B) owners of the specific factor should be opposed to international trade in all cases.
C) owners of the specific factor in the comparative disadvantage industry should be in favor of international trade.
D) owners of the specific factor in the comparative advantage industry should be in favor of international trade.
E) factors of production never move.

Question

Quizplus · Accepted Answer

Owners of the specific factor in the comparative advantage industry benefit from international trade because it allows them to specialize and increase their production and profits.

In the Specific-Factors Model