Consider an offshoring model in which Foreign’s skilled labour has a higher relative wage than Home’s skilled wage and i

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Consider an offshoring model in which Foreign’s skilled labour
has a higher relative wage than Home’s skilled wage and in which
the costs of capital and trade are uniform across production
activities.
i. Will Home’s offshore production activities be high or low on
the value chain for a given product? That is, will Home offshore
production activities that are high-skilled-intensive or
low-skilled-intensive? Explain.
ii. Suppose that Home uniformly decreases its tariff level,
effectively decreasing the cost of importing all goods and services
from abroad. How does this change the slicing of the value
chain?
iii. Draw relative labour and demand diagrams for Home and
Foreign showing the effect of this change. What happens to the
relative wage in each country?