(Answered) 1 present a one-factor ricardian model of two countries a

Economics

1) Present a one-factor Ricardian model of two countries, A and B, trading two goods, X and Y, and discuss the gains of trade generated in this model.

2) Verbally and graphically explain the production structures of trading partners in the HO model. Your answer should discuss output and input choices given goods and factor prices as well as factor endowments.

3) Verbally and graphically present the benefits of trade from the perspective of the HO model. List and briefly explain two main implications of trade.

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