q one reason international trade has a powerful


Q. One reason international trade has a powerful effect on the distribution of income within countries is that some factors are "specific", and therefore cannot move costlessly from one industry to another. What is another necessary condition for international trade to have such a strong effect on intra-country income distributions?

Answer: It is essential that the relative factor intensities differ from industry to industry.

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International Economics: q one reason international trade has a powerful
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