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Bonjour! Je te/t’ (appelle / présente) Pierre-Yves

SECTION 2 QUESTION 3: In 1994, the US joined with Canada and Mexico in entering the North America Free Trade Agreement (NAFTA). Many feared that US jobs would be lost to Mexico, or that it might at least cause the skill premium in the US to increase. The skill premium is defined as Ws/Wu which is the wage of skilled labor divided by the wage of unskilled labor. Use the HO Model to explain this prediction. Assume for simplicity that there are only two factors, Unskilled labor and skilled labor ,and only two countries, the US and Mexico.   Assuming that the US is skilled labor abundant, answer the following questions i. What should happen to the skill premium (Ws/Wu) in the US and Mexico, according to HO Theory? ii. What alternative explanation for the rising skill premium was discussed in class. State the name and explain what it means. iii. If it was observied that Ws/Wu increased in both Mexico and the US would this be more consistent with the HO Model prediction or the alternative explanation in part iii? Explain.        

Use the following to answer the next 3 questions:  Consider the consequences of the United States increasing the volume of sugar allowed to be imported through its quota system where licenses are given to foreign firms.

BONUS QUESTION 2:

Which cause of death and disability has increased significantly, rising from #6 to one of the top 3 causes of death in high-income countries?

Which of the following has remained the leading cause of death in high-income countries from 1990 to 2019 and remains the leading cause of death in high-income countries?

PART 1: MULTIPLE CHOICE Choose the best answer for the following questions. Canvas will save your results as you go. 

The free trade relative price of motor vehicles to electrical products is ______ than it was in autarky in Malaysia.

Use the following information to answer questions 9-12. Make all of the regular assumptions of the 2 good/2 country Ricardian Model. The goods are aircraft and motor vehicles. The countries are the US and Japan. Under free trade with the United States, the wage earned if workers make motor vehicles in Japan is higher than the wage earned if workers make aircraft in Japan.  Japan produces

Use the folowing to answer questions 17-20:  The US and China produce 5 goods: Cars, furniture, textiles, pharmaceuticals, and corn. Labor is the only factor and there is perfect competition and constant marginal product of labor in all countries. The wage in the US is 4 times that of the wage in China.   The table below summarizes the marginal products of labor in each country for each good.   MPL in US MPL in China Cars 32 4 Furniture 10 8 Textiles 3 3 Pharmaceuticals 12 2.5 Corn 10 2