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Consider an offshoring model in which land and labour are used in 3 production activities. The following table shows the units of land and labour

Consider an offshoring model in which land and labour are used in 3 production activities. The following table shows the units of land and labour required to produce one unit of output in either country:

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Natural Resource Component Assembly Extraction production Land Home: 5 acres Home: 1 acre Home: 3 acres Foreign: 15 acres Foreign: 1 acre Foreign: 2 acres Labour Home: 1 hour Home: 2 hours Home: 3 hours Foreign: 2 hours Foreign: 2 hours Foreign: 2 hours

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