-Refer to Above Figure

question 31

Essay

-Refer to above figure. Two countries exist in this model, P and R. P is relatively labor (L) abundant, as is evident in the bottom right horizontal axis. If Country P were to be completely specialized in the labor-intensive product, C, it would be producing at point 4. In fact, it produces both C and P, at point 5. The (autarky) relative price of C (in terms of
F) of Country P is at point 3; and of Country R at point 1. If trade were to open up between these two countries, which would export C and which would export F? Is this consistent with the Heckscher-Ohlin model? Explain.

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Definitions:

National Weather Service

A United States federal agency tasked with providing weather forecasts, warnings of hazardous weather, and other weather-related products to organizations and the public.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

National Center for Health Statistics

A US agency responsible for collecting and analyzing data related to health and health care in the United States.

Standard Deviation

An indicator of the extent to which a set of numbers spreads out, showing the deviation of the values from their average.