What is likely to be the effect of trade on wages in z

Reference no: EM131249033

1. When trade begins, Country Z imports cloth, the labor-intensive commodity. What does this imply about Z's own factor endowment? Why? What is likely to be the effect of trade on wages in Z? Why?

2. What group in Country Z would you expect to support free trade? Why? Who would oppose it? How would you evaluate the claims by opponents that free trade reduced national welfare?

Reference no: EM131249033

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