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In the specific model with two consumption goods and labour (mobile) and land and capital (specific factors), in Home in the market equilibrium with free

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In the specific model with two consumption goods and labour (mobile) and land and capital (specific factors), in Home in the market equilibrium with free international trade of goods (compared to autarky) the price for land cannot be lower. a good that is exported cannot have a higher price. the economy does not achieve a Pareto improvement. workers will be better off if they consumption demand is sufficiently biased toward imported goods. consumption is strictly higher. the profit of the capital owners increases. the real wage will be higher

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