2 The impacts of international migration In this question, we continue using the setup above. Suppose Brazil is already integrated to international trade. Suppose a large number of Brazilian workers leave Brazil. 1. Draw a new labor market diagram. Using this diagram, show the impact of emigration. Label carefully the pro-emigration and post-emigration labor supply, wages, and employment in each sector. 2. Explain carefully how emigration impacts: (a) the marginal product of labor (b) the marginal product of land (c) the marginal product of capital. 3. What happens to the real returns to labor, land, and capital? Explain your answer carefully. 3 Optimal Tariffs in a Large Country 1. Consider a lari country applying a tariff t to imports of a good as repre- sented in Figure 8-9 of Feenstra and Taylor. Compare the relative welfare gains and losses of a tariff in the following two scenarios. Label and shade carefully the gains and losses following from the policies. (a) Starting from no tariffs, a very small tariff is set by the government. (b) Starting from no tariffs, a very large tariff is set by the government. 2. Is the optimal tariff for this country equal to zero? Explain your answer using your previous answer. 3. How does your response change as the elasticity of the world supply to this country increases? And if it decreases