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Endowment of factor accounted for by each country

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Reference no: EM131441659

Here is the information about each country share of the world endowment of a factor.

Percentage of the world endowment of factor accounted for by each country:

Country 

Research and Development Scientist

Arable land

US

50,7%

29,3%

Japan

23%

0,8%

1. Use appropiate diagrams, show that mutually beneficial trade between countries is possible. Label the diagrams clearly to show the pattern of trade that occurs, explain in words the sequence of changes that occur as the two economies move from no trade to free trade.

2. "Country X with abundant labor and scarce capital, initially has completely free trade with the world, If country X imposes a tariff on imports, its ratio of wages to return on capital will rise." - do you agree/why/why not?

Reference no: EM131441659

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