Question

Answer the questions below using a few paragraphs Explain why some people may think increased international trade may be responsible for increasing income inequality in the US. Use the H-O model to explain. What observable data items could be used to confirm this theory? Does the data support the theory? Briefly explain how the intuitions of the HO model can still be used in conjunction with offshoring to resurrect the trade-inequality hypothesis

Answer 1

wex - te nveeeality hae nited slale, ove the paut 30 Yeansr as income a flocwe unequally econerwi'c Litevakne largely privets t tnee ex plauatot te tnee eaplanatv Causes of allou es and Eategges aly inhereut in largeY ·Labor martet ineqeralit' er 'These trocos are cerea iuly connected. bat tiny als。have been Stucted ncleckgouq Complex and ucko eoied e The hyperthetie ecuei en he laga wage pxemitums or ugh variou pylutians -these explanaerens is ucid to develo piu -Har address the jout Causes inequality. cwortexs woith high levets eucatiou aud tils Still poemium, tven, sa sastt cil net being Suppled at a bat to teep up oHk demand i second enplanatiou -trade and globali? atiar Schelars, tneludiu Autvt poiwt to intreaes n trode aud as a Caute J income neq ualvty.erding to -this hypothes tade boe united State ud th 。sest of-Wecorld, especially cGowa, uas increaed th number

of imports in the o. economy The lout explanatton Suggests that U. govenmost Gameoorc that led to icteted an instt-turtional increas'» eualy. Since Ibo late la?oe, ckvequla thian de-a unieniattat caugese festeral mb.neteny polecdes the Shaveholder sevotettow and othet polictes sedce d Gos policy chauges such as hcreceteuunionizata,oe Qupeive stou street naitiuq th minimum coo maintaninq a tull-employmout fin mone t oetter r ty. ncome heuali Te thee main eaplanattot or u-hu to neqeal Causes over otheti. Reers emphson tsentavgt income equality ic nt to undes tuhissue, but it allo highlrgns tho Compesd Contibule to a trequality as no one Cae A Such auy poliy solutant that t Cen tity muu t rwatch this nuance and actnoc cus Cactuse that Contii bute to ed uali