Study of the Model of International Trade

Student: Avdeenko Iliya

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2024

The problem of income inequality in the context of globalization is one of the key economic and social problems of our time. This study is aimed at studying the patterns of the utility function of highly qualified workers, provided that the state strives to maintain the usefulness of low-skilled workers at the initial - autarkic level. To answer the research question, a model of perfect competition with two countries and two goods was developed. The results of the study show that when certain conditions are met, the utility function of individuals can either only increase, or always decrease, or decrease first and then increase. However, the utility function cannot first increase and then decrease. These findings can be used to develop more effective policies to regulate income inequality.

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