please help me figure out the question.

2) Consider an extension of the basic HO model that permits free capital movements as well as free trade in goods. Assume that a small open economy produces two goods, denoted good 1 and good 2, each using three factors in production, capital (K), labor (L) and land (T). The country has a xed endowment of labor and land, but capital is internationally mobile. The country takes goods prices p1 and p2 and the rental rate of capital r as xed. Without loss of generality, assume that sector 1 is land intensive, with a higher land-labor ratio than sector 2 at any given factor prices. Does the Stolper-Samuelson Theorem hold in this context? Use the zero prot conditions and full employment conditions to argue. (6 marks) 3) The following questions pertain to Krugman's 1978 model of trade. a) What assumptions of the standard 2x2x2 Heckscher-Ohlin general-equilibrium model of trade does Krugman's 1978 model relax? (2 marks) b) Consider the meat-processing industry in New Zealand. Labour is the ONLY factor of production used. The wage rate in New Zealand is w. The amount of labour (1) used to produce y units of output is given by 1=a+By