Explain how opening an economy to international trade changes the income distribution within the economy and in the economies of its trading partners. (Hint: Use specific models to arrive at your answers, and illustrate the models by comparing the before and after distributions of income.) 2. Read the article on global income inequality by Milanovic, explain Milanovic′s main findings, and then explain whether the models on trade and inequality explain what Milanovic found happened over the latter decades of the 20th century.
