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Q24. Consider two identical, 2 good, 2-factor economies with IRS in both goods. Through trade, H exports X and F exports Y. i. Describe and
Q24. Consider two identical, 2 good, 2-factor economies with IRS in both goods. Through trade, H exports X and F exports Y. i. Describe and show the circumstances under which H can be worse off from trade relative to autarky. . ii. Describe and show the circumstances under which F can be worse off from trade relative to autarky. . iii. Are factor prices equal across the two countries in the above cases? Explain why or why not
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