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Assume that Mexico receives an inflow of FDI. Suppose two factors (labor and capital) are used in the production in two industries (food and televisions).

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Assume that Mexico receives an inflow of FDI. Suppose two factors (labor and capital) are used in the production in two industries (food and televisions). Further assume that televisions are capital-intensive, as compared with food. Use the long-run international trade model to answer the following questions. a- Please show the impact of the inflow of FDI on Mexico with the output of food on the vertical axis. What happens to the output of each good? b- How has wage changed in terms of food and televisions? Graph and explain

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