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Two countries, Home and Foreign, produce computers (X) from capital and labor and apples (Y) from land and labor. Labor is mobile between the two

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Two countries, Home and Foreign, produce computers (X) from capital and labor and apples (Y) from land and labor. Labor is mobile between the two industries. The no-trade (Autarky) equilibrium in the two countries is illustrated in the diagram below: Home Foreign A) Show a possible equilibrium if the two countries are trading with each other. Indicate how production and consumption have changed in the two countries. B) How has the real rental to capital changed in home? Explain. B) How has the real rental to capital changed in Foreign? Explain. C) What happens to the demand for land in Home? D) If the winners could without cost compensate the losers, would the countries engage in free trade

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