Question: Question 2 (15 marks = 5x3) Please provide any relevant diagrams to illustrate your answers. (a) Assume that the standard assumptions of the Ricardian model

Question 2 (15 marks = 5x3) Please provide any relevant diagrams to illustrate your answers. (a) Assume that the standard assumptions of the Ricardian model hold. Are real wages equalized across countries in equilibrium under free trade? Explain in detail. (b) Assume that the standard assumptions of the international labour mobility model of chapter 4 hold. Are real wages equalized across countries in equilibrium when labor is freely mobile across countries? Explain in detail. (c) Briefly describe two factors that cause factor prices across countries to not be equalized in reality.

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