Developing countries in South have comparative advantage in unskilled-labor-intensive goods, and developed countries in North have...

 

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Developing countries in South have comparative advantage in unskilled-labor-intensive goods, and developed countries in North have comparative advantage in skilled-labor-intensive goods. According to the Stolper-Samuelson theorem, unskilled workers in Northern countries will lose as a result of increased North-South trade. However, these effects tend to be smaller than the Stolper- Samuelson theorem would suggest. Please explain the reasons HONG briefly. (10%) 1816008 SOC 1816008 SOO Developing countries in South have comparative advantage in unskilled-labor-intensive goods, and developed countries in North have comparative advantage in skilled-labor-intensive goods. According to the Stolper-Samuelson theorem, unskilled workers in Northern countries will lose as a result of increased North-South trade. However, these effects tend to be smaller than the Stolper- Samuelson theorem would suggest. Please explain the reasons HONG briefly. (10%) 1816008 SOC 1816008 SOO