1. In a brief. but concise, essay describe the assumptions and implications of the Heckscher-Ohlin theory. Lookup an independent source from the internet that defines and describes the H-0 theory and properly cite this source. (20 points) (Critical Thinking 60%; writing organization, 20% and research 20%.) 2 (a) In 1947, Wassily Leontief tested the H-0 theory for the United States and to his surprise found that the U5 exported more labor- intensive goods, rather than capital goods. How does your textbook explain this seeming contradiction? (10 points) (Critical thinking 70%; clearly write and organize your argument, 30%) 2 (b) Do you think this explanation is correct? How would you characterize the factor endowments of US exports compared with US imports today? (Hint you need to consider multiple input factors, not merely labor and capital.) Find an independent source (outside of the text and course lectures) of US trading patterns based upon factor endowments from the internet. (10 points) (Critical Thinking 50% and research 30%, writing ability 20%) 3 (a) What is the difference between internal and external economies of scale? (Answer in one or two paragraphs.) (5 points) (Critical thinking 80%; Writing 20% Be concise and organized. 3 (b) How can clustering economies (aka agglomeration) affect trading patterns? Provide a few examples of factors that can result in external economies of scale affecting trading patterns. (You will need to review my PowerPoint lecture notes on this.) (10 Points) Critical thinking 80% writing 20%) 4. Why do similar developed countries such as the US and Canada exchange many similar, but different goods, with each other? What is the HT index and interpret the meaning of an NT value of 0.90 compared to 0.10. Doesn't a high or low \"T conflict with the H-0 factor theory? Why? (5 points) Discuss. (Critical Analysis 90% Writing 10%.)