Suppose that we have three factors: capital, labor, and land.

a. Can these factors easily migrate from one sector to another in the short run or in the long run? Briefly explain.

b. Which of these factors is mobile and why?

c. Cars require capital and labor, and cheese requires land and labor.

Suppose that Japan’s endowment of land and capital are 80 land and 50 capital, and the United States’ endowment of land and capital are 100 capital and 70 land. Which goods do Japan and the United States export?

d. What happens to landowners and capital owners in both countries?

Briefly explain.