International Economics Assigned

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International economics
Country A and B resume trade with each other after years of enmity. Country A is abundant in high skilled labor (HSL) which is intensively used in the manufacture of Video Games (VG) and Country B is abundant in unskilled labor (UL) which is intensively used in growing Coffee(C).
The Heckscher Ohlin Theorem models presupposes that factor inputs move to better paying sectors in the short run when there is open trade between two countries (Carbaugh 70). Country A will export Video Games (VG) because she has abundant supply of skilled labor, and will import Coffee (C).While country B will export Coffee(C) because she has abundant supply of unskilled labor (UL), and import Video Games (VG).
The Stolper Samuelson Theorem of international trade states that resumption of trading between countries causes the reduction of real wages in scarce input of production for both countries. Thus, there will be decrease in income among the unskilled workers in country A as unskilled labor is scarce, but income of high skilled workers in country A will increase. In country B, income of high skilled workers will decrease, as they are short in supply while the income of unskilled workers will increase (Carbaugh 77).
‘The World is Flat’: What are the points made by Thomas Friedman that resonated with you—list any two points and explain why.
Friedman’s assertions that the world is flat signify that the world is more interconnected than ever before through use of technology. Consequently, completion in the international arena is more even with no single nation or organization having complete dominance over others, while geographical boundaries are less clear as companies venture into new markets. Supply chaining is one of the most compelling arguments by Friedman, as the use of technology has led to the adoption of vertical integration with a view to minimize costs and facilitate efficiency in the workplace. The case of Wal-Mart is testament to this to the low prices brought about by supply chaining and vertical integration. Outsourcing is also a valid point whereby there is cost reduction through use of technology and outsourcing from cheaper sources of labor.
‘The World is Flat’ : Pick any two instances where you do not agree with Friedman’s argument. Explain why?
Friedman views uploading as a flattener, but goes on to dismiss the activity as being disruptive in nature. I disagree with his assertion on uploading with the intent of informing audiences or passing a message through online communication. Furthermore, the assertion that globalization is synonymous with equa...