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Suppose there is a world with three countries which produce two goods with capital and labour, using the same technology. Country A is very labour
Suppose there is a world with three countries which produce two goods with capital and labour, using the same technology. Country A is very labour intensive, Country B is very capital intensive and Country C's capital per labour ratio lies somewhere between these two extremes. All three countries begin trading with each other simultaneously. How would the changes in goods prices and factor prices in Country C compare to those in Country A and B?
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