Therefore the “unskilled-labor intensive”
goods industry will grow in Mexico and (mobile) unskilled labor in Mexico will benefit from higher
wages resulting from this increase in demand for their services. Further, one might anticipate that
regions with abundant unskilled labor will benefit more than other areas from trade with the United
States. Last, if the sector using the abundant input has increasing returns to scale, one might anticipate
trade to cause increasing agglomeration, despite the increasing conjestion costs and the decreased pull
of the domestic market