Suppose that two countries A and B start to trade together. Country A specialises in the production of good X and country B specialises in the production of good Y (meaning A exports good X, while B exports good Y).
Everything else being equal (in particular, there is no gain in productivity and no labour mobility), we can observe in country B:

Question

Suppose that two countries A and B start to trade together. Country A specialises in the production of good X and country B specialises in the production of good Y (meaning A exports good X, while B exports good Y).

Everything else being equal (in particular, there is no gain in productivity and no labour mobility), we can observe in country B:

Accepted Answer

higher wages and higher employment in the sector producing Y

Answer

I don't know

Answer

lower wages and lower employment in the sector producing X

Answer

lower wages and higher employment in the sector producing Y

Answer

higher wages and lower employment in the sector producing X

Crowdly

Suppose that two countries A and B start to trade together. Country A specialise...

Хочете миттєвий доступ до всіх перевірених відповідей на lms.univ-cotedazur.fr?