High-skilled labor allocationHigh-skilled labor allocationLcomputersH shirtsshirtsL computersH shirtsHshirtsH shirtsO shirtsH shirts L shirts1LshirtsLow-skilled labor allocation (to shirts and computers)Hcomputers/LcomputersHshirts L shirtsLcomputers 0H computerscomputersH computers LcomputersHshirtscomputersLcomputers 0H ComputerscomputersL shirtsLow-skilled labor allocation (to shirts and computers)HLshirtscomputersUsing these two plots (also on the L7 slides), explain what happens to the labor market (H and L)during the structural change of two industries when the country participates in international trade.Why the original wages (in autarky) can no longer be sustained in this case?

Comparative advantage states that during international trade, countries should export those products…

Using these two plots (also on the L7 slides), explain what happens to the labor market (H and L) during the structural change of two industries when the country participates in international trade. Why the original wages (in autarky) can no longer be sustained in this case?

Using these two plots (also on the L7 slides), explain what happens to the labor market (H and L) during the structural change of two industries when the country participates in international trade. Why the original wages (in autarky) can no longer be sustained in this case?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

High-skilled labor allocation
High-skilled labor allocation
L
computers
H shirts
shirts
L computers
H shirts
Hshirts
H shirts
O shirts
H shirts L shirts
1
Lshirts
Low-skilled labor allocation (to shirts and computers)
Hcomputers/Lcomputers
Hshirts L shirts
Lcomputers 0
H computers
computers
H computers Lcomputers
H
shirts
computers
Lcomputers 0
H Computers
computers
L shirts
Low-skilled labor allocation (to shirts and computers)
H
L
shirts
computers
Using these two plots (also on the L7 slides), explain what happens to the labor market (H and L)
during the structural change of two industries when the country participates in international trade.
Why the original wages (in autarky) can no longer be sustained in this case?

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