Project #4: HeckscherOhlin Theory Suppose that US has 1200 units of capital and 800 units of labor, and that Sri Lanka has 300 units of capital and 280 units of labor. Also, suppose that production of each car requires 20 units of capital and 8 units of labor, and that production of each cloth requires 1 unit of capital and 2 units of labor. Suppose that the autarky wage rate and rent to capital in US each equal 60, and that the autarky wage rate and rent to capital in Sri Lanka are 20 and 100 respectively. a. Which country is labor abundant and which one is capital abundant based on the physical definition of factor abundance? Explain. Which country is labor abundant and which one is capital abundant based on the price definition of factor abundance? Explain. Which commodity is labor intensive and which one is capital intensive? Explain