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2. Assume that there are two factors of production: land and labor. According to the Observatory of Economic Complexity, over 40% of North Korea's imports
2. Assume that there are two factors of production: land and labor. According to the Observatory of Economic Complexity, over 40% of North Korea's imports are food products, while under 1% of its exports are food. Over 40% of its exports are machinery, while under 1% of its imports are machinery. a. Assume machinery is labor-intensive, and food is landzimensile. Is North Korea abundant in land or labor according to the Heckscher-Ohlin theorem? b. What would be the impact of removing sanctions (allowing more trade) on the real wage in North Korea according to the H-0 theorem? 0. What is the impact of opening trade on the real rent of land (the return to holding land) according to the H-0 theorem? d. Which group in North Korea, workers or landowners, would have supported policies that would limit free trade? Please briey explain
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