Consider two countries, Vietnam and China, producing two goods, textiles and televisions. Suppose that textiles are relatively labor-intensive. Vietnam has 20 units of capital and 16 units of labor, and China has 300 units of capital and 150 units of labor.

a. Which country is relatively labor-abundant? Explain.

b. Which country will export textiles? Explain.

c. In Vietnam, the production of which good decreases under trade? In China?

d. In China, is the relative price of televisions higher under free trade or no trade? Explain.

e. Which group benefits from trade in China? In Vietnam?