Background:In the first assignment you motivated a story about comparative advantage. In this section you will talk about trade and inequality. You will then address the relationship between...

The country that I have chosen for this analysis is India and analyzed for the period from 1963 to 2015, due to lack of data for industrial pay inequality difference after the period 2015.
Openness VS Industrial pay
The above graph openness versus Industrial pay inequality shows that there exists a positive relationship between them, openness lines is above the industrial pay inequality line till 2006 and after that the openness line is below the industrial inequality line.
2.
Correlation is a statistical metric that describes how closely two variables are connected linearly (they varies together at a constant rate). It's a frequent method for explaining simple interactions without stating a cause and effect relationship. There are 4 types of correlation, high positive correlation, high negative correlation, low positive correlation, and low negative correlation.
If correlation value is 1 or closer to 1 indicates high correlation. High positive correlation means that when one variable increases the other variable also increases by higher value, low positive correlation indicates that when one variable increases the other variable increases by smaller value. High negative correlation means that when one variable increases the other variable decreases by high value, low negative correlation indicates that when one variable increases the other variable decreases by smaller amount.
Income disparity refers to how income is distributed unequally throughout a population. The more unequal distribution leads to the greater income disparity. Trade openness is one indicator of a country's participation in the global trade system. The ratio of the total of exports and imports to gross domestic product is commonly used to gauge trade openness (GDP).
Correlation between the variable openness and industrial pay inequality for India is 0.46.This indicates that there is a low positive correlation between the two variables means an increase in trade openness increases the industrial pay inequality by lower points.
3.
When positive production and negative economic profit are maintained in each industry, the Stolper-Samuelson theorem shows how changes in output prices impact the prices of the components. It is useful in assessing the impact on factor income when countries transition from autarky to free trade or when duties or other government controls are introduced within the framework of a Heckscher-Ohlin (H-O) model.
According to the H-O hypothesis, the labor abundant nation specializes in the export of labor-intensive commodities, whereas the capital abundant country specializes in the export of capital-intensive commodities.
The Stolper-Samuelson theorem (SST) essentially states that an increase in the relative (producer) pricing of the capital intensive good would benefit capital owners while harming labors, and vice versa, provided that same quantity of each commodity...