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ustry trade? The interindustry trade means the exchange between nations of products of different industries, it involves of different factor endowments. But intraindustry trade means the flows of goods with similar factor requirements, nations that are exporters of manufactured goods embodying sophisticated technology also purchase such goods from other nations. Intraindustry trade includes trade in homogeneous goods as well as in differentiated products, and intraindustry trade increases the range of choices available to consumers as well as the degree of petition among manufactures of the same class of product in each nation. Essay 35. Try to draw the figure that vertical axis shows the wage ratio, which equals the wage of skilled workers divided by the wage of unskilled works。 labor c. labor。 decrease 26. One potential reasonable explanation for the Leontief paradox is that a. The . exports capital intensive goods b. . labor is more productive than its foreign counterpart c. . tastes were biased strongly in favor of capital intensive goods d. The two factor model that was used was inplete 27. According to the factor price equalization theorem a nation that has a relative capital abundance should specialize in goods that are ______ intensive resulting in an increase in the price of ______. a. capital。 decrease c. decrease。s welfare to: a. deteriorate b. improve c. remain unchanged d. any of the above 7*. The equilibrium price and quantity for a modity traded between two nations occurs where a. the slopes of the two offer curves are the same. b. the two offer curves intersect c. the slopes of the two offer curves is equal to zero d. the price ratio of good X for good Y is equals one. 8*. Suppose nation 1 is an importer of good X. In a general equilibrium framework, an increase in the demand for good Y will a. decreased the price of good X and increase the volume of imports of good X b. decreased the price of good X and decrease the volume of imports of good X c. increase the price of good X and increase the volume of imports of good X d. increase the