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In the economy represented by the above table, when foreign trade starts; a). Do you expect a change in the price ratio and which way?

In the economy represented by the above table, when foreign trade starts; a). Do you expect a change in the price ratio and which way? (Here you should make an assumption regarding the exported good.) b). What changes will there be in income distribution of the mobile factor (labor) and the specific factors?

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Labor G1 0 1 2 3 4 5 6 7 8 9 10 Output G1 0,0 25,1 38.1 48,6 57,7 66,0 73,6 80,7 87,4 93,9 100,0 Labor G2 0 1 2 3 4 5 6 7 8 9 10 Output G2 0,0 39,8 52,5 61,8 69,3 75,8 81,5 86,7 91,4 95,9 100,0 Labor G2 10 9 8 7 6 5 4 3 2 1 0 Output G2 100.0 95,9 91,4 86,7 81,5 75,8 69,3 61,8 52,5 39,8 0,0 Labor G1 0 1 2 3 4 5 6 7 8 9 10 Output G1 0,0 25,1 38.1 48,6 57,7 66,0 73,6 80,7 87,4 93,9 100,0 Labor G2 0 1 2 3 4 5 6 7 8 9 10 Output G2 0,0 39,8 52,5 61,8 69,3 75,8 81,5 86,7 91,4 95,9 100,0 Labor G2 10 9 8 7 6 5 4 3 2 1 0 Output G2 100.0 95,9 91,4 86,7 81,5 75,8 69,3 61,8 52,5 39,8 0,0

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