ASAP~~~~

4. In the HO model, there is no trade cost, and thus relative price of good is equal across countries after trade. The model assumes that factors cannot move across countries, but it also predicts that factor price will be equalized under free trade of goods. Explain how free international trade in goods tends to lead to factor price equalization under the assumptions of the HO model. What does this process predict about which groups should be in favor of or opposed to free international trade? (Hint: What is the connection between prices of goods and prices of factors?) 4. In the HO model, there is no trade cost, and thus relative price of good is equal across countries after trade. The model assumes that factors cannot move across countries, but it also predicts that factor price will be equalized under free trade of goods. Explain how free international trade in goods tends to lead to factor price equalization under the assumptions of the HO model. What does this process predict about which groups should be in favor of or opposed to free international trade? (Hint: What is the connection between prices of goods and prices of factors?)