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Q. |
According to the Heckscher - Ohlin model, if the United States is richly endowed in human capital relative to Mexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries, |
A. | The United States will find its industrial base sucked into Mexico |
B. | Mexico will find its relatively highly skilled workers drawn to the United States |
C. | The wages of highly skilled U.S. workers will be drawn down to Mexican levels |
D. | The wages of highly skilled Mexican workers will rise to those in the United States. |
Answer» D. The wages of highly skilled Mexican workers will rise to those in the United States. |
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