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2 Labor and capital intensity across industries In the context of the HeckscherOhlin model with the two production factors capital and labor, we have discussed

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2 Labor and capital intensity across industries In the context of the HeckscherOhlin model with the two production factors capital and labor, we have discussed that industries differ in their labor and capitalintensities. (a) Dene labor and capitalintensity of an industry. (b) Explain what we mean when we assume that there are no factor intensity reversals. Illustrate the case of a. factor intensity reversal using a suitable diagram. (c) Imagine a variant of the HeckscherOhlin model with two production factors labor and land used in two industries. Dene labor and land intensity of an industry in such a model. Can you think of examples of a landintensive industry versus a laborintensive industry

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