The world consists of two countries, H (Home) and F (Foreign). Both countries are endowed with skilled labor (S) and unskilled labor (N). Country H is far smaller but relatively more skilled-labor abundant than country F, ~> S. Both types of labor are hired in sector e for the production of electronics as well as in sector g for the production of garments. Sector e is skilled-labor intensive, while sector g is unskilled-labor intensive. Consumers have the preference over electronics and garments, U = Ce * Cg, where Ce and Cg denote the consumption of electronics and cars, respectively. The assumptions of the H-O model hold. Take electronics as the numeraire. In equilibrium, skilled labor earns a higher wage rate than unskilled labor. Skill premium is defined as the wage ratio of skilled versus unskilled labor. Scenario 1: Unskilled Immigrants and Skill Premium under Autarky Country H is initially under autarky before it receives the inflows of unskilled migrants. a) Show graphically and explain intuitively the impacts of unskilled migrants on skill premium and on the sectoral skilled-unskilled labor ratio in country H. (2 marks) b) Use the box diagram to show the impacts of unskilled migrants on sectoral inputs of skilled and unskilled labor, respectively. How do unskilled migrants affect the welfare of skilled labor and unskilled labor in country H? (2 marks) c) Use the production possibility curve and the indifference curve to show graphically the impacts of unskilled migrants on sectoral production and consumption. (3 marks) Scenario 2: Unskilled Immigrants and Skill Premium under Free Trade Country H is initially under free trade before it receives the inflows of unskilled migrants. d) Show graphically and explain intuitively the impacts of unskilled migrants on skill premium and on the sectoral skilled-unskilled labor ratio in country H. (2 marks) e) Use the box diagram to show the impacts of unskilled migrants on sectoral inputs of skilled and unskilled labor, respectively. How do unskilled migrants affect the welfare of skilled labor and unskilled labor in country H? (2 marks) f) Use the production possibility curve and the indifference curve to show graphically the impacts of unskilled migrants on sectoral production and consumption. (3 marks) g) Use trade triangle to explain graphically how unskilled migrants affects trade flows. Explain intuitively whether your findings depend on the size of migrant inflows. (3 marks) Scenario 3: Skilled Immigrants and Skill Premium under Free Trade Country H is initially under free trade before it receives the inflows of skilled migrants. h) Explain intuitively how skilled migrants affects trade flows and skill premium. Explain intuitively whether your findings depend on the size of migrant inflows. (3 marks)