There are two countries Home and Foreign country. Both countries produce Food and Cloth. Food production uses 80 workers and 200 acres, while cloth production uses 40 workers and 40 acres. Home country has 80 million workers (L) and 200 million acres of land (T). Foreign country has 40 million workers and 40 million acres of land. 1. Calculate factor intensive of each product. 2. Calculate factor abundance of Home and Foreign country. 3. Base on Heckscher-Ohlin Theory which goods Home and Foreign trade to each other.

There are two countries Home and Foreign country. Both countries produce Food and Cloth. Food production uses 80 workers and 200 acres, while cloth production uses 40 workers and 40 acres. Home country has 80 million workers (L) and 200 million acres of land (T). Foreign country has 40 million workers and 40 million acres of land. 1. Calculate factor intensive of each product. 2. Calculate factor abundance of Home and Foreign country. 3. Base on Heckscher-Ohlin Theory which goods Home and Foreign trade to each other.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter3: The Fundamental Economic Problem: Scarcity And Choice

Section: Chapter Questions

Problem 4TY

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