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Answer to Question #247319 in Macroeconomics for shina

Question #247319
explain the applicability of the Stolper-Samuelson theorem for predicting terms of trade in two countries.
1
Expert's answer
2021-10-06T09:44:31-0400

The Stolper-Samuelson theorem states that in a two-commodity, two-factor country, an ad valorem import tariff will result in a greater than proportionate rise in the price of the matching "intensive" element in that industry.


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