26th United Nations Climate Change Conference in Glasgow
1.Use the Specific Factors Model to represent the North in the short run,with electronics specific capital in the electronics sector, apparel-specific capital in the apparel sector, and labour mobile between the two sectors, to assess whether all factor-owners in the North share the burden of the transfer evenly if everyone contributes the same amount to the cost of the transfer. (Suggested word allocation: 500 words)
2. Repeat the same analysis, except now base your answer on the Heckscher Ohlin
Model. If everyone in the North pays the same amount toward the transfer, is the
burden of financing this transfer evenly shared? (Suggested word allocation: 500
words)
