Assume that Trinbago is a small country that produces wine and motor vehicles, where motor vehicles are capital intensive. Trinbago is also capital intensive, and the standard Heckscher -Ohlin (H-O) assumptions hold. The other country in the model is Vincyland. Questions:

(a) Based on the H-O assumptions, which good should Vincyland export, and why?

(b) What trade pattern would occur if the Leontief Paradox holds? Which two (2) explanations of the Leontief Paradox most strongly support the H-O theory? Give the reasons.

(c) In autarky, according to Ohlin, how does Trinbagos relative price of labour compare to Vincylands?

(d) Show the necessary graphs to fully explain all requested effects. Ensure to label graphs and give brief explanations.