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Country A has 10 units of capital and 5 units of labor. Country B has 30 units of labor and 2 units of capital. In

Country A has 10 units of capital and 5 units of labor. Country B has 30 units of labor and 2 units of capital.

In a situation of autarky which country, if any, would you expect to have higher real wages? Suppose the countries engage in Heckscher-Olin trade. What would you expect to happen to real wages as a result of trade? Explain your answer.

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