Problem
Consider an H-O economy in which there are two countries (United States and France), two goods (wine and cheese), and two factors (capital and labor).Suppose France exports wine, the capital-intensive good. Which factor benefits from free trade in the United States? Explain. Suppose workers in France benefit when tariffs are increased on cheese imports. Which factor is used intensively in cheese production? What is France's abundant factor? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.