1. Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y Technology is the same in the two countries. X is Capital-intensive; Ais capital-abundant. Analyze the effects on the terms of trade and on the two countries' welfare of the following: 3) An increase in A's capital stock. bj An increase in A's labor supply. c) An increase in B's capital stock d An increase in B's labor supply