Suppose that there are two countries, A and B. Comparing the twocountries, all but one factors affecting their labor markets arethe same. Country A is relatively more open so that capital couldflow in and out of Country A quicker than in and out of Country B.Imagine that there is a positive shock of labor supply due to thesame sudden increase of unskilled immigrants into Country A andCountry B. Assuming that unskilled immigrants are perfectsubstitutes of unskilled native workers, which of the fo
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