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Suppose that the United Kingdom and the United States have the factor endowments given in the table below: UK USA Capital 60 computers 10 computers

Suppose that the United Kingdom and the United States have the factor endowments given in the table below:

UK USA
Capital 60 computers 10 computers
Labor 300 workers 100 workers

Suppose further that the production requirements for a unit of manufacturing goods is two machines and eight workers, and the requirement for a unit of agricultural goods is one machine and eight workers.

Which good, manufacturing or agricultural, is relatively intensive in the use of capital? In labor? Show how you know; numerical justification is required. Which country would export agricultural goods? Why?

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