1The value of final goods is at least equal to the sum of the value of the intermediate goods used in their production. Hence, if A is world exports of intermediate goods, B is world exports of final goods and C is total goods exports in the world, A/C cannot be greater than B/C.

Clearly indicate if the statement istrue orfalseandbrieflyexplain your answer.

2Consider the following two countries' population in 2020, China with a population of 1.44 billion people and Cambodia with a population of 17 million people. In the Heckscher-Ohlin Model China would be considered labour abundant relative to Cambodia because its population is much larger than Cambodia's population.

Clearly indicate if the statement istrue orfalseandbrieflyexplain your answer.