(d). Suppose production of Cars and Textiles in Turkey requires capital and labor. But the capital is specific so that textiles uses a specific type of capital for textiles and cars uses a specific capital used for making cars. If Turkey opens for trade and impots cars and exports textiles, based on specific factors theory state which factor gains and which factor will lose? Briefly explain.

(d). Suppose production of Cars and Textiles in Turkey requires capital and labor. But the capital is specific so that textiles uses a specific type of capital for textiles and cars uses a specific capital used for making cars. If Turkey opens for trade and impots cars and exports textiles, based on specific factors theory state which factor gains and which factor will lose? Briefly explain.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 4QR

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