Q1: Compare the long-run H-O model with the short-run Specific-factors model comprehensively. (hint: assumptions, key lessons on trading pattern, impacts on factor prices)

Q2: H-O model is closely related to the basic Ricardian model. Discuss the close relationship and key differences between H-O model and the Ricardian model

Q3:Computers: Sales revenue =cc=100$

Payments to labor=c=40 $

Payments to capital =c=60 $

Shoes:Sales revenue =ss=100$

Payments to labor =s=70 $

Payments to capital = s =30 $

Suppose that the price of shoes Ps rises by 10%, whereas the price of computers Ps does not change at all. Calculate the percentage change of wage and rental on capital in the two (computers and shoes) industries, and discuss the changes in real wage and real rental on capital in the two industries.