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Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. What would happen to the demand for labor in these two industries?

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In this exercise we have to examine structural unemployment and its causes. To better understand this problem, we are given four scenarios of two industries: auto manufacturing and aircraft manufacturing.

Let's analyze the second scenario.

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