of India and Bangladesh produce two goods, jute and cotton in an H-O type world. Each good uses two factors of production, labor, and capital. Both jute and cotton have identical K/L ratios. 1. Do both countries then have to have identical relative endowments of capital to labor lie, identical capital-labor ratios)? Why? 2. Draw the PPF of both countries. How do the relative costs of jute to cotton differ for these countries in autarky? Discuss the possible benefits of free trade in this case. Can you identify the pattern of comparative advantage and trade? 3. Draw a world relative supply and world relative demand graph and show the equilibrium world relative price of jute to cotton. Discuss the importance of the assumption of different factor intensities in producing the various results of the H-O model