20.2 The prediction that unrestricted trade causes a convergence of wages across the trading countries seems quite stark: Is it really the case that U.S. wages will converge to the wages in the developing world if trade is unrestricted? We will consider this here.

A. Workers in the United States have significantly more human capital—education, skills, etc.—than workers in Bangladesh. As a result, workers in the United States have a higher marginal product of labor.