Show that if a country has comparative advantage in good X, it has comparative disadvantage in good Y. 2. The United States can no longer compete in world markets because American wages are too high. Evaluate this statement. Developed countries get all the of the gains from trade when they trade with developing countries because they can dictate their prices to these countries. Evaluate this statement.
Developed countries have nothing to gain by trading with developing countries.
Evaluate this statement. Compare and contrast the classical and HO theories of international trade. Italy is labor abundant. Shoes are labor intensive and wheat is capital intensive. Be sure to identify which country has comparative advantage in which good.