A country uses labor to produce cars and beer in autarky. When it begins trade with another country, it exports cars and imports beer. Labor mobility in both countries is restricted to movement between firms within an industry. Which of the following statements about post-trade real wages in this country is correct?
a. Real wage of car workers in terms of cars will increase.
b. Real wage of beer workers in terms of cars will increase.
c. Real wage of car workers in terms of beer will remain unchanged. d. Real wage of beer workers in terms of beer will fall.
e. Real wage of car workers in terms of beer will increase.