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8. On March 2, 2013, Tajikistan successfully negotiated terms to become a member of the World Trade Organization. Consequentl

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Answer: According to the Stolper-Samuelson theorem, the real wage of unskilled labor in Western Europe will experience a decrease in real earnings because Western Europe is skilled-abundant relative to Tajikistan and will specialize in the skilled-intensive good. By trading with Tajikistan, the relative price of the skilled-intensive good will rise. In Western Europe, this leads to an increase in the real earnings of skilled labor and a decrease in the real wage of unskilled labor. The situation would be opposite in the Tajikistan, where the real wage of unskilled labor would increase.

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