Northsea and East coast are neighboring countries that permit workers to cross their border freely. Both have industri
Northsea and East coast are neighboring countries that permit workers to cross their border freely. Both have industries that use the same technologies to produce computers and brooms using skilled labor and unskilled labor, and both types of labor are perfectly mobile between the computer and broom industries. Computer production intensively uses skilled workers, and broom production intensively uses unskilled workers. Industries within each nation compete in the same markets for skilled and unskilled workers. Market wages earned by skilled workers are the same in both industries, and wages earned by unskilled workers are the same in both industries. In both nations, the market wage of the skilled worker is higher than the market of unskilled workers, but in the absence of trade, North seas skilled workers earn a higher marketed wage than those in East Coast. North Residents of both counties wish to consumer computers in the same proportion to their consumption of brooms. Which type of worker will tend to move or commute to North sea? To East coast? Will north sea and East coast necessarily desire to engage in trade of computers and brooms? Explain.