N1

Question 6 1 pts The graph below the production possibilities frontier, indifference curves, and pre-trade and post-trade ratio of prices for two countries: Home and Foreign. Product B is capital intensive while Product A is labor intensive. In the Heckscher-Ohlin model of international trade, what does the trading pattern tell you about these countries' factor endowments? Home Foreign A Foreign's labor force is more productive in producing A than Home's. O Home must be labor-abundant compared to Foreign. O Home's labor productivity must be higher than Foreign's in producing B. Foreign is more labor-abundant than Home