Consider the Heckscher-Ohlin model of trade. Two countries, Argentina and Brazil, produce two goods, Cars (C) and Beer (B), using two factors, Skilled workers (S) and Unskilled workers (U). Skilled workers are those who obtained at least a college degree. There are overall 120 million workers in Brazil, 15% of whom have a college degree. In Argentina there are 25 million workers, 20% of whom have a college degree. Furthermore, suppose that in autarky in Argentina Car producers use 2 Skilled worker and 3 Unskilled workers to produce one car, while Beer producers use 15 Skilled workers and 7 Unskilled workers to produce one barrel of Beer. Trade equilibrium Which country exports Cars and which country exports Beer? What happens to the relative wage of Skilled workers WS WU (i.e., the skill premium) in each country after they start trading