Question: International Trade problem about one-factor Ricardian Model with two countries and many goods. Consider a world with two countries and three goods. Both countries can

International Trade problem about one-factor Ricardian Model with two countries and many goods.

Consider a world with two countries and three goods. Both countries can use linear labor-only technologies to produce these goods.

Assume that the equilibrium pattern of specialization is such that both countries produce strictly positive amounts of good 2.

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International Trade problem about one-factor Ricardian Model with two countries and many

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goods. Consider a world with two countries and three goods. Both countries

1. Consider a world with two countries and three goods. Both countries can use linear labor-only technologies to produce these goods. The labor productivities in the home country are denoted by Zn,H, and in the foreign country by Zn,F, where ne {1, 2,3}. These productivities are positive and satisfy 21.H 22.H 23.1 1. 1. Consider a world with two countries and three goods. Both countries can use linear labor-only technologies to produce these goods. The labor productivities in the home country are denoted by Zn,H, and in the foreign country by Zn,F, where ne {1, 2,3}. These productivities are positive and satisfy 21.H 22.H 23.1 1

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