The country of Pugelovia has an endowment (total supply) of 20 units of labor and 3 units
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The country of Pugelovia has an endowment (total supply) of 20 units of labor and 3 units of land, whereas the rest of the world has 80 units of labor and 7 units of land. Is Pugelovia labor-abundant? Is Pugelovia land-abundant? If wheat is land-intensive and cloth is labor-intensive, what is the Heckscher–Ohlin prediction for the pattern of trade between Pugelovia and the rest of the world?
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Pugelovia has 20 percent of the worlds labor 2020 80 wherea...View the full answer
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