Question: a) Comment on the following statement: Accordingly to the Specific-Factor Model, with trade, workers are worse off, regardless of which industry they are employed

a) Comment on the following statement: "Accordingly to the Specific-Factor Model, with trade, workers are worse off, regardless of which industry they are employed."

b) Based on the Figure below with a focus on Japan and the rest of the world (ROW), and two goods automobiles and rice. How do these two countries trade with one another?

a) Comment on the following statement: "Accordingly to the Specific-Factor Model, with

100% 7.47 11.5% 90 13.4%% 19.6% 16.57 23.5% 80 30.0% 20.71 11.5% 16 07 70 21.1% 13.9% 60 5.6% 10.25. 50 11.1% 3.3% 5.1% 40 2.9% 30 62.3% 62-6% 20 42.47 46.2 30.3% 33.5% 10 Physical R&D Skilled Less-skilled Illiterate Arable GDP capital scientists Labor labor Labor (1) land (2) (3) (4) (5) (6) (7) United China Japan India Germany States O United France Canada Rest of Kingdom World

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