Solved: Assume that germany has only two factors of production, Business Management

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Assume that germany has only two factors of production

Assume that Germany has only two factors of production, capital and labor, and two industries, capital-intensive car production and labor-intensive dairy production. Based on the Heckscher-Ohlin model, who gains and who loses in Germany if the world demand for German cars as well as the price of German cars increased because of cheap oil?

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