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we have learned that if the world trade prices are fixed in the trade equilibrium, then inflows of workers have no impact on the factor

  1. we have learned that if the world trade prices are fixed in the trade equilibrium, then inflows of workers have no impact on the factor prices in the Heckscher-Ohlin model, a result otherwise known as "factor price insensitivity". Does this result hold in the autarky equilibrium? Will the factor prices respond to the inflow of workers? If yes, will the w/r ratio increase or decrease? Why? Note that in the autarky equilibrium, the output prices are no longer fixed as they respond to the inflow of workers.

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