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Assume two countries, Home and Foreign, producing three goods, Apples, Bananas and Caviar. At Home the unit labor requirement is aLA = 10, aLB =
Assume two countries, Home and Foreign, producing three goods, Apples, Bananas and Caviar. At Home the unit labor requirement is aLA = 10, aLB = 4 and aLC = 3, andatForeignaLA =9,aLB =3andaLC =2. (a) Order the relative Home productivity advantage in all the goods. (b) Who produces what when w < 2? And when w = 2? w3 w3 (c)Whoproduceswhatwhen w =3?Andwhen w (3,9)? w4 w410 (d) Whoproduceswhatwhen w = 9 ? Andwhen w > 9
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