1 We Are In Two Good Two Country Where All Of The Assumptions Of The Heckscher Ohlin 3298412

1) We are in two good, two country, where all of the assumptions of the Heckscher-Ohlin model of trade are satisfied. Suppose that in Japan there are 50 workers and 50 acres of land, while in the US there are 100 workers and 200 acres of land. Suppose furthermore that the two goods, rice, and cloth, are produced using land and labor. Rice is land intensive. Suppose the two countries open up to trade. What will be the pattern of trade? why?

 

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