In a two-country model with two goods and two factors, the home and foreign countries have identical homothetic tastes. In each of the following two separate cases, what happens to the wage/rental ratio in each country when free international trade replaces autarky?

A. The endowment of capital is three times greater in the foreign country than in the home one, the foreign endowment of labour is twice as large as the home endowment, and the two countries have the same technology.

B. Technology for the labour-intensive good is three times more advanced (Hicks-neutrally) in the foreign country than in the home one, foreign technology is twice as advanced (Hicks-neutrally) as home technology for the capital-intensive good, and the two countries have identical factor endowments.