Final answer:
According to the Heckscher-Ohlin model, trade is more likely to be relatively more important to small countries. Therefore, the effects of trade on US prices should be large.
Step-by-step explanation:
The Heckscher-Ohlin model states that the gains from international trade are more likely to be relatively more important to small countries.
This is because small countries often have a high level of trade due to their geographic proximity to trading partners and a long history of foreign trade, like Sweden.
On the other hand, large economies like the United States and Japan have comparatively low levels of trade by world standards.
For example, Sweden has many nearby trading partners across Europe and has a higher level of trade. However, countries like Brazil and India, which are fairly large economies, have lower levels of trade because they have often sought to inhibit trade in recent decades.
The United States and Japan, although extremely large economies, have relatively few nearby trading partners and low levels of trade as compared to their size.
Therefore, based on the Heckscher-Ohlin model, trade is a large fraction of the US economy, so its effects on US prices should be large.