Question: Q3 (2 points) State whether the following statement is true, false, or uncertain in a model with two goods and two mobile factors, labour and

 Q3 (2 points) State whether the following statement is true, false,

Q3 (2 points) State whether the following statement is true, false, or uncertain in a model with two goods and two mobile factors, labour and capital. In evaluating each of the following statements, assume that the two countries have identical tastes and identical technology. Also assume that the two countries are engaged in trade. Explain your answer. According to the Heckscher-Ohlin model, if two countries participating in international trade have identical technologies and produce the same two goods, factor prices in the two countries will be equalized. (Answer in complete sentences/paragraphs, with carefully- labelled diagrams as appropriate)

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