With the given information, how can I determine the impact of trade liberalization on Foreign’s factor intensities, worker and capitalist’s welfare? Microsoft Word – EC161 Problem Set 3 Spring 2016...

With the given information, how can I determine the impact of trade liberalization on Foreign’s factor intensities, worker and capitalist’s welfare?

Microsoft Word – EC161 Problem Set 3 Spring 2016 Vdocx

There’s a world composed of 2 countries called Home and Foreign, producing 2 goods (computers and shoes) using 2 factors (capital and labor) Home is capital abundant and computers are capital intensive