Question 2 (50%) Read: "The lesson from Brexit is that too much market and too little state invites a backlash" (Kevin O'Rourke). Link: https://blogs.Ise.ac.uk/europpblog/2016/08/24/the-lesson-from-brexit-is-that-too-muc h-market-and-too-little-state-invites-a-backlash/ This article argues that the fact that blue-collar workers have voted for Brexit and against the 'Constitutional Treaty' in France is part of an anti-globalization sentiment in this group. The author mentions in this article (and other articles written by him), how the Heckscher-Ohlin model predicts this behavior. a) Explain why non-skilled workers in the UK, France, and other high-income countries could have a negative attitude towards globalization. Use the contents of this week's lectures to explain this phenomenon. b) "If the high skilled were more favourably inclined towards free trade in all countries, this would not be consistent with Heckscher-Ohlin theory." Explain that sentence. Optional reading: Angry voters have a point, but protectionism is not the answer (by Rafael de Hoyos) https://www.brookings.edu/blog/future-development/2017/03/20/angry-voters-have-a- point-but-protectionism-is-not-the-answer/