In Middle Earth, there are two Kingdoms: Gondor and Rohan. At some point the kings of...

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In Middle Earth, there are two Kingdoms: Gondor and Rohan. At some point the kings of both kingdoms decided to become allies, and to start engaging in trade to strengthen themselves economically. Before the trading begins, Rohan and Gondor have to figure out what products they will export and import. Pretend you are one of the economic advisors overseeing this process and use the information below. Rohan Capital Labor Wheat 30 200 Swords 50 40 Gondor Capital Labor Wheat 20 60 Swords 180 60 Q1 (4 pts): Compute the intensity of each sector (i.e. is wheat in Rohan capital or labor intensive? what about swords? what about wheat in Gondor) Q2 (4 pts). Compute the abundance of each Kingdom (i.e. is Rohan capital or labor abundant, what about swords?). Q3 (4 pts). Which kingdom will export wheat and which kingdom will export swords? Solve this according to the H-O model. In Middle Earth, there are two Kingdoms: Gondor and Rohan. At some point the kings of both kingdoms decided to become allies, and to start engaging in trade to strengthen themselves economically. Before the trading begins, Rohan and Gondor have to figure out what products they will export and import. Pretend you are one of the economic advisors overseeing this process and use the information below. Rohan Capital Labor Wheat 30 200 Swords 50 40 Gondor Capital Labor Wheat 20 60 Swords 180 60 Q1 (4 pts): Compute the intensity of each sector (i.e. is wheat in Rohan capital or labor intensive? what about swords? what about wheat in Gondor) Q2 (4 pts). Compute the abundance of each Kingdom (i.e. is Rohan capital or labor abundant, what about swords?). Q3 (4 pts). Which kingdom will export wheat and which kingdom will export swords? Solve this according to the H-O model.

Answer rating: 100% (QA)

I apologize for the incomplete response Here is the complete and accurate answer Q1 Intensity of eac... View the full answer