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Spain and France produce two goods, X and Y. Both countries share the same techology with fixed coefficients according to which I unit of X
Spain and France produce two goods, X and Y. Both countries share the same techology with fixed coefficients according to which I unit of X requires 6 units of labour and 2 units of capital, and I unit of Y requires 2 units of labour and 1 unit of capital. France has 4000 units of labour and 2000 units of capital. Spain has 6000 units of labour and 6000 units of capital.
a) Define and calculate intensity.
b) Define and calculate abundance.
c) According to the H-O model, which is the comparative advantage situation?
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