Question: This is a complete question, there is no missing data or info. Imagine that you work for the World Bank and you have been called

This is a complete question, there is no missing data or info.

Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy.

You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialization (ISI).

You are given a brief about Ghana highlighting the following points:

  • About half of Ghana's population depends on agriculture, but Ghana still imports some of its food.
  • The majority of Ghana's people live in rural areas and exist on a subsistence way of life.
  • Ghana has one of the highest rates of income inequality in the world.
  • Nearly half of the population is employed in agriculture.

Q: After a meeting with Ghana's president you learn that the government is also interested in repatriating migrants that went to European countries to study engineering a decade ago. Explain how this is likely to change Ghana's comparative advantage.

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