Question 2: Heckscher-Ohlin Model: Suppose Home country's factor endowments are given by LH = 100, and KH 2 300, whereas foreign country's factor endowments are given by LF 2 100, and KP = 100. Both countries have two sectors, manufacturing (M) and agriculture {A}, with identical technologies across countries. Suppose the pro duction of agricultural goods is relatively more labor intensive compared to production of manufacturing goods. (c) Determine is the impact of trade on the following outcomes in the Home country. Make sure to show each step of your derivation. (15] (3') r/PM (ii) r/PA where r is the rental rate of capital, PM is the price of manufacturing goods and PA is the price of agricultural goods