Assume a two-country, two-commodity, two-input model where the following relationships hold:

(K/L)Japan> (K/L)India

(K/L)steel> (K/L)computers

(K/L)Japanis the capital-labor ratio in Japan, (K/L)Indiais the capital-labor ratio in India, (K/L)computersindicates the capital-labor ratio in the production of computers, and (K/L)steelindicates the capital-labor ratio in the production of steel.

Assume further that technology and tastes are the same in Japan and India. If trade opens up between Japan and India, according to the Heckscher-Ohlin model, Japan will export ________ and import

a.

steel; computers.

b.

neither good; both goods.

c.

both goods; neither good.

d.

computers; steel.