Question 1:Please provide short answers to the following 6 questions, indicate True or False, and explain why.

1. (a)Japan is capital abundant, India is labour abundant. Computers are capital intensive relative to wheat. Free trade with India will increase the relative price of wheat in Japan. (5)
2. (b)Canada has comparative advantage in capital intensive good. Expansion in exports increases the relative demand for capital, thus increases labor/capital ratio in all industries. (5)
3. (c)If capital is specific to manufacturing, and land is specific to agriculture, a relative price increase in the manufacturing sector lowers the real returns to land. (5)
4. (d)Dumping is never a profit maximizing strategy for a monopoly in the exporting country. (5)
5. (e)Article XIX is an exception to the most-favored-nation treatment of WTO. (5)
6. (f)In a tit-for-tat trade war, infinitely repeated Prisoner's Dilemma game leads to the cooperative equilibrium. (5)