In a closed economy a labor abundant country such as Indonesia would have low wages relative to capital rents and be a low opportunity cost producer of labor-intensive goods. A framework such as the HOS model predicts that as Indonesia opens to trade the REAL wages of laborers in that country should increase. Briefly, but as clearly as possible, explain in words the causal mechanisms that explain this result. Say the A sector is labor-intensive. Then the question is, when Pa/Pb rises, what happens next to explain the prediction. You can use bullet points (- or *), arrows ('-->' ) and brief phrases to keep your answer short but clear