Suppose that until recently, U.S. firms that produce digital apps had been utilizing only the labor of

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Suppose that until recently, U.S. firms that produce digital apps had been utilizing only the labor of qualified U.S. workers at a wage rate of $35 per hour. Now, however, these firms have begun engaging in labor outsourcing to Russia, where qualified workers are available at a dollar wage rate of $15 per hour. Evaluate the effects of this new U.S. app-labor outsourcing initiative on U.S. and Russian employment levels and wages.
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