3)(15 pts) Consider two countries, Vietnam and China, producing two goods, textile and televisions. Suppose that textile is relatively labor-intensive. Vietnam has 25 units of capital and 10 units of labor and China has 300 units of capital and 150 units of labor.

a.Which country is relatively capital-abundant? Explain.

b.Which country will export textile? Explain.

c.In Vietnam the production of which good decrease under trade? In China?

d.In Vietnam, is the relative price of televisions higher under free trade or no trade? Explain.

e.Which group benefits from trade in China? In Vietnam?

f.What determines the pattern of international trade between two countries in the Heckscher-Ohlin model?