Consider the following data on two countries, A and B:

	Azerbaijan	Belize
1994 Population (millions of persons)	8.3	0.3
Capital stock per worker ($ mils, 2005)	4.9	1.1

Use the Hecksher-Ohlin model to answer the following:

a. Which country is capital abundant & why?

b. Which country is labor abundant & why?

c. Supposing that good T (toupes) is labor intensive relative to good B (bowler hats), which country will have a comparative advantage in the production of T?

d. Which factors gain & which lose in real terms when trade is opened between the two countries? Explain your answer using graphs & logical reasoning.