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assume there are two countries in the world called north and south each producing output using a combination of capital and labor with a uniform production function. each country begins with equal endowments of capital and labor. there is free movement of labor between north and south but capital is strictly immobile. under classical assumptions, sketch the relevant factor markets for each country and how they might change under given conditions. explain the process and outcomes in each country as fully as you can.
Sagot :
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