In the past decade a sea change has taken place in trade policies in Latin America: within a few years, most of the region's economies have changed from restrictive to open policies. But unlike trade liberalization in Europe, most trade barriers in Latin America have been reduced unilaterally....

This paper raises the question when both goods and factors can move in an opening of two countries' borders whether it is possible to say a priori which of the two would move and which moves faster as both move. The paper notes that this question should be answered in terms of the extent of the...