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4) Imagine an economy with two sectors (that produce goods A and M), one factor perfectly mobile across sectors and two specific factors. Imagine that
4) Imagine an economy with two sectors (that produce goods A and M), one factor perfectly mobile across sectors and two specific factors. Imagine that the economy moves from autarky to a situation of international trade in which it imports A and exports M. In such a situation, workers: a) Lose with respect to both goods b) Gain with respect to the imported good and lose with respect to the exported good c) Gain with respect to both goods d) Gain with respect to the exported good and lose with respect to the imported good
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