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Consider two countries, Here and There. Assume Here is capital abundant and There is labor abundant. Each country has the same two industries, computer manufacturing,
Consider two countries, Here and There. Assume Here is capital abundant and There is labor abundant. Each country has the same two industries, computer manufacturing, which is capital intensive and shoe manufacturing which is labor intensive. Both countries are initially in autarky and each country has a fixed supply of labor and capital, but labor and capital may move freely from one industry to another within each country. Explain your answers
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