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The US produces one product (clothing-consumer electronics) made mostly with low skilled labor and another product (airplanes) made mostly with human and physical capital.Use supply
The US produces one product (clothing-consumer electronics) made mostly with low skilled labor and another product (airplanes) made mostly with human and physical capital.Use supply and demand diagrams for these 2 product markets and 2 factor markets (low skilled labor and capital) to explain the effect of increased trade with developing countries on the ratio of college graduate wages to high school dropout wages and the US Gini coefficient.Also draw Lorenz curves and explain the Gini coefficient before and after the increase in trade.
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