(Solved): how to draw the trade traingle Trade and Resources: The Heckscher-Ohlin Model - End of Chapter Probl ...

Trade and Resources: The Heckscher-Ohlin Model - End of Chapter Problem Consider the production of handmade rugs and assembly line robots in Canada and India. a. Of the two countries, is likely to be capital-abundant, as it has a smaller population and is more highly developed . Similarly, is likely to be labor-abundant. b. Of the two industries, are likely to be labor-intensive, and are likely to be capital-intensive, given the amounts of labor and capital required in each. c. Consider the graphs. Given the PPFs shown, graph (a) represents , and graph (b) represents d. Suppose Canada is willing to export six units of the good in which it has a comparative advantage. In each graph, move the trade triangle to illustrate the trade equilibrium. India will export and import Canada will export and import Graph (a) Robots Graph(b)