Question: Explain what will cause wages to change in Nation 1 as a result of trade. If demand is the same for products in both countries,

Explain what will cause wages to change in Nation 1 as

Explain what will cause wages to change in Nation 1 as a result of trade.

If demand is the same for products in both countries, which country, Nation 1 or 2, will exhibit a higher relative wage after trade?

Suppose that commodity Y is capital-intensive and commodity X is labor intensive product. Nation 1's ppf Nation 2'sppf Y

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