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Conceptually, what would happen to relative factor prices in labor-abundant country A and capital-abundant country B if the two countries joined together into a customs
Conceptually, what would happen to relative factor prices in labor-abundant country A and
capital-abundant country B if the two countries joined together into a customs union? Why?
Conceptually, why could the additional step of moving from a customs union to a common
market not result in any movement of labor and capital between the two countries? Explain.
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