To the model of U.S.-China trade presented in Section 6.2, add a third country, called Colombia. Suppose

Question:

To the model of U.S.-China trade presented in Section 6.2, add a third country, called Colombia. Suppose that the Colombian economy has 90 million unskilled workers and 60 million skilled workers, and the same technology and preferences as China and the United States, and that both kinds of labor are freely mobile across industries just as in those two countries.
(a) Suppose that Colombia opens up trade with the United States at a time when trade is not possible between either China and Colombia or China and the United States. What will happen to wages and the of income within Colombia as a result of the opening of trade?
(b) Now, suppose that Colombia opens up trade with the United States after the United States has opened up free trade with China. Will the effect of trade on wages and on the of income in Colombia be different than it was in Question (a)? Why or why not?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...