Suppose you work for a Nebraska based company that produces two goods: Fertilizers and Pesticides. These two goods are produced locally but exported to several firms in Guyana that uses both goods in their production of Agricultural products. Suppose further that due to recent policy changes that have to do with waste disposal and pollution, producing these two goods in Nebraska is substantially more expensive, so much so that the bosses at your company are considering moving the production of these goods to two potential countries: Panama and Benin Republic. Upon recalling that you had mentioned during your job interview that you had taken an International Economics class in college, they call on you to advise them on the best way to approach this. You are provided the following information from the company's research team.

For Panama: Total available labor supply: 140 Million Labor hours

Total available Capital supply: 70 Million units

Benin Republic: Total available labor supply: 30 Million Labor hours

Total available Capital supply: 6 Million Units

In both countries, technology levels are the same and based on the level of technology, in the production of Pesticides, the ratio of labor employed to capital used is 1:3 and in the production of Fertilizer, the ratio of labor employed to capital used is 2:1.

List of companies and quantities of each good being supplied by your company in Guyana

Company Name	Quantity of Fertilizer (in millions of tons)	Quantity of Pesticide (in millions of tons)
Anderson Limited	68	124
Crate Technologies.	72	112
Yinn Ho Enterprises	119	84
Klaus Co.	45	96
Myers and Sons.	37	25
Ober Conglomerate	82	312
Pitsch Limited	91	77
Valente PLC	36	29

Given that your company can still fulfill its obligations to the firms in Guyana without paying the extra costs associated with producing in Nebraska should they choose to produce in either Panama or Benin Republic or both, you have been asked to answer the following questions that cause upper management some degree of concern.

1. Where should your company produce Fertilizer?

a) produce half in Nebraska and half in Guyana

b) Produce half of your demand in Benin Republic and half in Panama

c) produce fertilizer in Guyana only

d) in neither one of the countries

e) Produce fertilizer in Nebraska only

f) Produce half of your demand in Panama and half in Guyana

g) in both countries

h) Produce fertilizer in Panama only

I) Produce fertilizer in Benin Republic only

j) Produce half of your demand in Benin Republic and half in Guyana

2. Where should your company produce pesticides

a) Produce half of your demand in Benin Republic and half in Panama

b) produce half in Nebraska and half in Guyana

c) Produce pesticides in Benin Republic only

d) produce pesticides in Guyana only

e) in both countries

f) Produce half of your demand in Panama and half in Guyana

g) Produce pesticides in Nebraska only

h) Produce half of your demand in Benin Republic and half in Guyana

I) in neither one of the countries

j) Produce pesticides in Panama only

3. Which group will welcome your company in panama and which group will oppose your company's presence in Panama

a) Capital owners and workers in the fertilizer industry will welcome your company while capital owners and workers in the pesticide sector will oppose your company

b) Only Capital owners in the pesticide industry will welcome your company while capital owners in the fertilizer sector will oppose your company

c) Capital owners and workers in the pesticide industry will welcome your company while capital owners and workers in the fertilizer sector will oppose your company

d) Workers in Panama will welcome your company while capital owners will oppose your company's presence

e) Only workers in the pesticide industry will welcome your company while workers in the fertilizer sector will oppose your company

f) Only workers in the fertilizer industry will welcome your company while workers in the pesticide sector will oppose your company

g) Capital owners in Panama will welcome your company while workers will oppose your company's presence

h) Neither capital owners nor workers will welcome your company

I) Only capital owners in the fertilizer industry will welcome your company while capital owners in the pesticide sector will oppose your company

j) Both capital owners and workers will welcome your company

4. In Guyana, which firms will support your company's decision to engage in foreign direct investments in either Panama or Benin Republic or both and which firms will discourage it?

a) None of the firms will support your company's decision

b) Only firms that buy above a hundred million tons of fertilizers will support your firm's decision

c) All firms will support your company's decision

d) Only firms that buy above a hundred million tons of pesticides will support your firm's decision

e) Only firms that buy less than 100 million tons of fertilizers will support your firm's decision

f) Firms that buy more fertilizers than pesticides from your firm will support your company's decision but firms that buy more fertilizers than pesticides from your firm will not support your company's decision

g) Only firms that buy less than 100 million tons of pesticide will support your firm's decision

h) Firms that buy more pesticides than fertilizers from your firm will support your company's decision but firms that buy more pesticides than fertilizers from your firm will not support your company's decision

5) If immigration policies in Panama change such that there is an increase in the labor force then

a) Both pesticide and fertilizer production stay the same

b)Pesticide production decreases and fertilizer production stays the same

c)Pesticide production increases and fertilizer production decreases

d)fertilizer production increases and Pesticide production decreases

e)Fertilizer production increases and pesticide production stays the same

f)Both pesticide and fertilizer production decrease

g)production of both goods first rise and then fall

h)Fertilizer production decreases and pesticide production stays the same

i)Pesticide production increases and fertilizer production stays the same

j)Both fertilizer and pesticide production increase