3. (30 marks) Let there be two countries, Home and Foreign, producing two goods, 1 and 2, with two factors, L and K, under the conditions of the Heckscher-Ohlin model. Home's endowments are L =750, K =1000. Foreign's endowments are L = 750, K =1100. Assume factor price equalization and that both good are produced in equilibrium. Also, the equilibrium unit factor demands are given by a, =5, dix =5; a,, =10, a,x = 20. Let world prices of the two goods be p, = 5, p, = 20. i. Use the Heckscher-Ohlin-Vanek Theorem to determine the factor content of trade (solve to one decimal place). Show all working. (15 marks) ii. Is your result in (i) consistent with the Heckscher-Ohlin Theorem? (Solve to 2 decimal places). Show all working. (15 marks)