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Analyzing the factor endowment of a country.

When trade begins, country ALFA imports cloth, the labor intensive commodity. Illustrate what this imply about ALFA's own factor endowment? Why? Assuming that there are only two goods, and the other good (food) is capital intensive, show the equilibrium points of production and consumption in ALFA, before and after trade.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919620

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