Question: Let's focus on US-China trade and two products, quantum computers, which are rel. Skilled Labour (SL)-intensive, and shoes, which are rel. Unskilled Labour (UL)-intensive. In
Let's focus on US-China trade and two products, quantum computers, which are rel. Skilled Labour (SL)-intensive, and shoes, which are rel. Unskilled Labour (UL)-intensive. In the US it is well known that low-skilled workers have been the "losers" from globalization.Ignoring reasons other than trade for the falling real incomes of US low-skilled workers (e.g., technological progress), what does this fact about the "losers" tell you about US factor endowments?Make all assumptions clear -- what model is the best to use? -- and explain fully.
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