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Assume a HeckscherOhlin model. Home and Foreign produce two goods, 13 e {1, 2}, using labor (L) and capital (K) as the unique inputs in both sectors. Both countries face the same technologies. In both countries the input requirements are xed at am 2 3, am 2 2, am 2 4, and am 2 3 (i.e., 2 units of labor are required to produce one unit of good 1 etc.). Home is endowed with K = 200 units of capital-hours and L = 200 units of labor- hours. Foreign is endowed with K* = 150 units of capital-hours and L* = 300 units of labor-hours. a) Relative factor intensity: The production of good 1 is :l intensive. b) Which input factor is abundant in Home? Home is abundant in |:|. c) Which good will be exported by Home? Home will export good Cl. This result is based on the :'lheorem. d)Assume that Foreign faces an increase in the labor force because of migration. How does this change affect the production of good 2