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3. (5 points) Suppose that Home has 20% of the world's capital, 10% of the worlds skilled labor, 30% of the world's unskilled labor, and

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3. (5 points) Suppose that Home has 20% of the world's capital, 10% of the worlds skilled labor, 30% of the world's unskilled labor, and produces 20% of the world's GDP. What does this information suggest about Home's resource endowments? Explain your answer. 4. (5 points) According to the StolperSamuelson theorem, would you expect U.S. skilled workers to benet from free trade worldwide? Briey explain your answer. 5. (5 points) According to the StolperSamuelson theorem, would you expect all workers across the globe to favor limiting trade? Why or why not? 6. (5 points) If Malaysia has a comparative advantage in producing lowskilled, labor intensive goods, what should happen to Malaysian lowskilled workers' wages as trade barriers against Malaysian imports fall across the world? What should happen to returns to capital in Malaysia? Briey explain why using what you've learned in lecture

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