KR = 50 Share of total costs paid to highskilled labor = 40/100 = 40% Share of

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KR = 50 Share of total costs paid to highskilled labor = 40/100 = 40%

Share of total costs paid to lowskilled labor = 10/100 = 10%

a. In which factor(s) is components intensive?

In which factor(s) is R&D intensive?

b. Suppose that due to the opening of trade, the price of components fall by ΔPC/PC =

−10%, while the price of R&D remains unchanged, ΔPR/PR = 0. Using the hint below, calculate the change in the wage of skilled and low-skilled labor?

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International Economics

ISBN: 9781429231183

2nd Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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Question Posted: Nov 07, 2024 05:00 AM

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KR = 50 Share of total costs paid to highskilled labor = 40/100 = 40% Share of total costs paid to lowskilled labor = 10/100 = 10% a. In which factor(s) is components intensive? In which factor(s) is...
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KR = 50 Share of total costs paid to highskilled labor = 40/100 = 40% Share of

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International Economics

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