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Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Good X is capital

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Countries A and B have two factors of production, capital and labor, with which they produce two goods, X and Y. Good X is capital intensive; Country A is capital abundant. Analyze the effects on the terms of trade and the welfare of Country A of the following: a. An increase in A's capital stock. b. An increase in A's labor supply. c. An increase in B's capital stock. d. An increase in B's labor supply

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