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The Rybczynski Theorem

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Sep 16, 2015
6:52

This video cover the Rybczynski Theorem, which asks: what happens if a factor of production increases in one country? Under some assumptions, the theorem hypothesizes that if labor migrates into a country, output and exports of the labor-intensive sector will go up. Also, output and exports of the capital-intensive sector will go down. This video also discusses how this theorem can be applied to real-world situations. International Trade course: http://mruniversity.com/courses/international-trade Ask a question about the video: http://mruniversity.com/courses/international-trade/rybczynski-theorem#QandA Next video: http://mruniversity.com/courses/international-trade/virtual-water

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The Rybczynski Theorem | NatokHD