1. What effect will trade have on the price of capital in developing and developed countries?\n2. It is sometimes claimed that trade with developing co
1. What effect will trade have on the price of capital in developing and developed countries?
\r\n2. It is sometimes claimed that trade with developing countries is unjust because it leads to the importation of goods produced at pitifully low wages. How can the Heckscher–Ohlin theory be used to refute this claim? Is there any validity in the claim? (see Box 24.3)