Assume a Heckscher-Ohlin model of trade. Germany (GER) and Cambodia (CAM) produce Cars (C) and rice (R) using two factors, capital (K) and labour (L), that are mobile across sectors. Technologies in both countries (expressed in units of labour and capital required to produced one unit of each product) are the following: LABOUR CAPITAL 10 20 CARS RICE 4 2 Further, production factor endowments in each country are as follow: LABOUR CAPITAL GERMANY 180 90 CAMBODIA 120 30 a) (2 marks) What product is capital intensive. Explain why. b) (2 marks) Which country is capital abundant relative to the other country? Explain why. ||