If we assume computer (C) is the capital-intensive goods, and shoes (S) is the labor-

intensive goods. After the free trade, the relative price of computer to shoes drops

in Home country (Pc). If we assume the price of shoes do not change(Ps= 0).PsPs

What will happen to the wage for the home labors (W)? What about the rentalsW

on the capitalRfor the home capital owners? Could you lay out the inequalityR

betweenR,W,Pcand 0?R W Pc