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Consider the following specific factors model of an economy

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1. Consider the following specific factors model of an international economy consisting of two countries, A and B and two goods a and u and three factors: capital and skilled (L.) and unskilled (L„) labor . Initially, assume that capital is mobile across industries but not across countries. On the other hand, skilled and unskilled labors are specific to sectors a and u respectively. 159_1.png

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Reference no: EM131103447

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