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1: Consider a Heckscher-Ohlin model. Two countries, Domestic and Foreign, produce A and B using the production technologies below. Let w = r in both

1: Consider a Heckscher-Ohlin model. Two countries, Domestic and Foreign, produce A and B using the production technologies below. Let w = r in both countries. A = LA + 2KA B = 2LB + KB 1.2. Suppose KD/LD < KF /LF . Will Domestic export A or B? A The A good B The B good

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