Consider two countries, Spain and Italy, where the only two factors of production are capital and labor. Spain has 100 units of capital and 400 units of labor, and Italy has 200 units of capital and 100 units of labor. Both countries produce two goods, cheese and suits. The labor share in total production costs is 75% for cheese but only 25% for suits. Show the following:

a. Italy is capital-abundant.

b. Suits are capital-intensive.

c. Under free trade, Italy will export suits.