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Unformatted text preview: o in the short run, factors are unable to move between sectors rise in rents on wheat-growing land; rise in wages for farm workers fall in rents on cotton-growing land; fall in wages for textile workers o in the long run, factors are mobile between sectors rise in rents on all land (compared to pre-trade levels) fall in wages for all workers (compared to pre-trade levels) • in the rest of the world, opposite changes happen so that rents fall and wages rise in the rest of the world in the long run So, some are absolutely better off and some worse off as a result of free trade....
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This note was uploaded on 11/22/2011 for the course FIN FIN1100 taught by Professor Bradrifkin during the Fall '09 term at Broward College.
- Fall '09
- Personal Finance