Assume thata the us is relatively capital abundantb india

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Assume that:

a. The U.S. is relatively Capital Abundant.

b. India is relatively abundant in Skilled Labor.

c. Tractors utilize capital relatively intensively.

d. Computer software utilizes skilled labor relatively intensively.

If trade between the U.S. and India is free, which good will the U.S. export and which will it import? What will happen to production of the two goods (increase or decrease) in the U.S? Explain your reasoning.

Reference no: EM13378015

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