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answer the question The global economy consists of 2 countries, Wang; (H) and Faraway (F), that trade with each other. Each country can produce 2

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The global economy consists of 2 countries, Wang; (H) and Faraway (F), that trade with each other. Each country can produce 2 goods, Automobiles (A) and Bananas (B). Production of automobiles is relatively capital-intensive; and Faraway is relatively lam-abundant. Suppose Wand Faraway are large economies, so any changes in the relative demand or supply in these countries will have a significant effect on the world relative demand or supply curves. Further suppose that the preferences of consumers in both countries are identical. Finally, assume that the Heckscher-Ohlin trade model accurately predicts the pattern of international trade between these economies. e (.1 (a) Which country is relatively capital abundant? Justify your responsesI (1' mark) 0 (J (I [Type your answer here.]

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