Suppose there are two goods being produced in the economy


Suppose there are two goods being produced in the economy: robots and wheat. Robots are a capital intensive good and wheat is a labor intensive good. Suppose that there are two countries: France and Brazil. France is capital abundant and Brazil is labor abundant. Using two graphs (one per country) draw the international trade equilibrium for this two country world economy based on the Heckscher-Ohlin model.

Be sure to include (1) the production possibility frontiers, (2) the relative price line, (3) indifference curves and (4) trade triangles. Completely label both graphs for full credit.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Suppose there are two goods being produced in the economy
Reference No:- TGS01185163

Expected delivery within 24 Hours