Final answer:
Reduction in trade barriers will likely boost jobs and wages in the paint industry in Germany and the alarm clock industry in the Czech Republic, while the opposite industries might see a decline. To maintain employment levels, retraining and economic flexibility are needed.
Step-by-step explanation:
When trade barriers between Germany and the Czech Republic are reduced, the pattern of trade that emerges is likely to increase jobs and wages in industries where each country has a comparative advantage. This means, for Germany's paint industry, an increase is expected due to heightened demand from the Czech Republic. Conversely, the alarm clock industry in Germany might experience a decrease as cheaper Czech alarm clocks enter the market. In the Czech Republic, the alarm clock industry should see a boost in jobs and wages due to increased exports, while the paint industry might face a decline as it competes with German imports.
To avoid an increase in total unemployment in both countries, workers from declining industries must be able to move to growing sectors or new jobs created by the economic benefits of increased trade. This typically requires education, retraining programs, and a flexible workforce.