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Suppose That the Home Country in the Two-Sector (Manufacturing and Agriculture)

question 122

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Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advantage in manufactured output. Will workers be better or worse off following the opening of trade with other countries?

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Definitions:

Labour Homogenization

The process of making a workforce more uniform in skills and characteristics, often due to technological, educational, or policy changes.

Occupational Structure

The arrangement and distribution of jobs and careers within a society, including patterns of segregation or hierarchy.

Underclass Of The Occupational Hierarchy

Refers to individuals in the lowest stratum of the occupational structure, often characterized by low-income jobs with little to no possibility of upward mobility.

Occupational Structure

A framework detailing the various job roles, functions, and hierarchies within an organization or economy.

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