Consider a world in which there are 2 types of workers: engineers (high-skilled workers) and assembly workers (low-skilled workers). Suppose Mexico is assembly-worker abundant when compared to the United States and furniture production is assembly-worker intensive when compared to heavy machinery production. You may assume the economy is perfectly-competitive and there are zero transport costs associated with international trade. a. Characterizing inequality by the relative wage of high-skilled workers (as compared to low-skilled workers), in this setting, can Mexico’s economic integration with the United States explain rising inequality in Mexico in the last half century? Explain why or why not [a complete answer will provide details based on our 2x2x2 economic theory (related to a country’s factor abundance and an industry’s factor intensity)]. b. What fundamental theorem of international economics did you use in answering part (a)? c. Opponents of expanded trade with countries like China and Mexico often point to rising inequality in the United States. Offer three counterarguments, making specific reference to part (a).