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[1] About HO: for the following subquestions refer to an example with (USA) and (MEX), two goods (iPads and shirts), and two factors: low-skilled (LS)
[1] About HO: for the following subquestions refer to an example with (USA) and (MEX), two goods (iPads and shirts), and two factors: low-skilled (LS) and high- skilled (HS) workers. Assume that iPads are relatively intensive in the use of HS, and that (MEX) is relatively abundant in LS workers (a) Can we infer from the information provided in the question if shirts are intensive in the use of some factor? Yes or no? If Yes, what can we infer? If No, why can't we infer anything?: (b) Can we infer from the information provided if (USA) is relatively abundant in some factor? Yes or no? If Yes, what can we infer? If No, why can't we infer anything? () (20 points) Indicate what cach country produces, exports and imports (just fill cach space with the good). For (USA): Production: Imports: Exports: For (MEX): Production: Imports: Exports: (d) (20 points) In this model, are both countries better off under trade? Yes or No? Why? [1] About HO: for the following subquestions refer to an example with (USA) and (MEX), two goods (iPads and shirts), and two factors: low-skilled (LS) and high- skilled (HS) workers. Assume that iPads are relatively intensive in the use of HS, and that (MEX) is relatively abundant in LS workers (a) Can we infer from the information provided in the question if shirts are intensive in the use of some factor? Yes or no? If Yes, what can we infer? If No, why can't we infer anything?: (b) Can we infer from the information provided if (USA) is relatively abundant in some factor? Yes or no? If Yes, what can we infer? If No, why can't we infer anything? () (20 points) Indicate what cach country produces, exports and imports (just fill cach space with the good). For (USA): Production: Imports: Exports: For (MEX): Production: Imports: Exports: (d) (20 points) In this model, are both countries better off under trade? Yes or No? Why
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