Suppose a capital-abundant country A (such as the U.K.) is in a trade equilibrium with a labor-abundant country B (such as Vietnam) where country B has a tariff in place. Suppose country B now decides to remove the tariff.

a.Use production-possibilities frontier (PPF) and indifference curves to show the effect of the tariff removal on country B's trade triangle and gains from trade.

b.Use a graph to illustrate how the tariff removal may affect country B's income inequality.

c.Discussion: which assumption(s) in the Heckscher-Ohlin model may lead to potential discrepancies between theoretical predictions and real world effects?