Keep the assumption of 2 countries, 2 industries (computers and shoes) and make shoes labor intense.But, now, let the home country be labor abundant.When it opens to trade, show what happens to the wage/rental ratio and the labor capital ratio in each industry using a figure like the one in figure 4-12 (the one with the L/K ratios and the wage rental ratio). What happens to the real wage?

That is, you should be using a figure like this, and show what happens to economy-wide relative demand as well wage/rental and L/K in both industries after the shock.

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