Belgium is relatively well endowed with skilled workers compared with China, which is relatively well endowed with unskilled workers. Assume that the production of pharmaceutical products intensively uses skilled workers and the production of toys intensively uses unskilled workers.

a. Which country would you expect to have a higher relative wage in skilled labor with no trade?

b. Which country has the higher relative price of pharmaceutical products prior to trading?

c. Under free trade, which country experiences an increase in the relative wage of skilled workers? Explain.