If the kland ratio for belgium is higher than that for, Macroeconomics

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If the kland ratio for belgium is higher than that for

Problem

1. Explain the difference between the price and the physical definitions of factor abundance. When could they give conflicting answers about which factor is the abundant factor?

2. If the K/land ratio for Belgium is higher than that for France, what kind of products might Belgium export to France? Why?

3. Suppose that the K/L ratio is higher in France than in Spain. What would you expect to happen to wages in France as trade took place between the two countries? Why?

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