3. Consider 2 countries that each produce two goods X and Y defined as follows. Assume the identical technologies across countries where X is K intensive and Y is L intensive. HOME FOREIGN Yu= g(Ly, KY) LH:lx-LY-20 KH KxtKy 10 Describe the PPF for each country. (10pts) Describe the pattern of trade between these two countries. (10pts) Suppose that the home country experiences immigration such that its labour supply increases 15. Describe the impact on the free trade price, the pattern of trade and gains from trade. (20pts) a. b. c. 3. Consider 2 countries that each produce two goods X and Y defined as follows. Assume the identical technologies across countries where X is K intensive and Y is L intensive. HOME FOREIGN Yu= g(Ly, KY) LH:lx-LY-20 KH KxtKy 10 Describe the PPF for each country. (10pts) Describe the pattern of trade between these two countries. (10pts) Suppose that the home country experiences immigration such that its labour supply increases 15. Describe the impact on the free trade price, the pattern of trade and gains from trade. (20pts) a. b. c