Question: 1. The following are data on U.S. exports and imports in 2012 at the two-digit Harmonized Tariff Schedule (HTS) level. Which products do you think support the Heckscher-Ohlin theorem? Which products are inconsistent?
2. Following are data for soybean yield, production, and trade for 2010-2011:
Suppose that the countries listed in the table are engaged in free trade and that soybean production is land-intensive. Answer the following:
a. In which countries does land benefit from free trade in soybeans? Explain.
b. In which countries does land lose from free trade in soybeans? Explain.
c. In which countries does the move to free trade in soybeans have little or no effect on the land rental? Explain.
