Assume a two-country, two-good, and two-input model where the following relationships hold: ( K/L) U > (K/L)R (K/L)cars > (K/L)shirts (K/L)u is the capital-labor ratio in Country X, (K/L)R is the capital-labor ratio in Country R, (K/L)cars indicates the capital-labor ratio in the production of cars, and (K/L)shirts indicates the capital-labor ratio in the production of shirts. Assume further that technology and tastes are the same in the Country U and Country R. According to the HO Model, Country U has a comparative advantage in the production of while Country R comparative advantage in the production of O both the goods; neither shirts nor cars O shirts; cars O cars; shirts O neither shirts nor cars; both of the goods