Question: Why do returns to specific factors change by more than returns to mobile factors when international trade changes relative prices? According to the two-sector (manufacturing

Why do returns to specific factors change by more than returns to mobile factors when international trade changes relative prices?

According to the two-sector (manufacturing and agriculture) specific-factor model, will nominal and real wages rise, fall, or not change when a country with comparative advantage in agricultural output moves from an autarky to a free trade situation?

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