4. Three countries (A, B and 0) use Capital (K), Labour (L) and Land (T) to produce goods. The following table provides information on each countries share of the world endowment of the factor as well as share of world GDP. Country K L T GDP A 60 60 30 50 B 20 30 20 25 C 20 10 50 25 Describe the types of goods that each country should export and import (capital- intensive, labour-intensive, etc.). 5. Use the standard trade model to show how exportbiased growth lowers a country's terms of trade. Using two diagrams of the country's PPF, show how the exportbiased growth can lead to either an increase or a decrease in the welfare of the country. 6. Use the stande trade model to predict changes to Home's terms of trade and welfare for the following scenarios: (Show changes to RS and RD and show changes in a diagram of Home's PPF). Home exports Cloth, Foreign exports Food. Cloth uses Labour intensively, Food uses Capital intensively. (a) Home experiences growth in the size of its labour force at the same time that foreign experiences a reduction in its endowment of land. (b) Foreign places a tariff on the good that it imports. (0) Home provides an export subsidy. Consider a monopolistically competitive industry where demands and costs are all symmetric across rms (the me function is the same for all rms and the demand parameters are the same for all rms)