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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
- 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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