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Use the following table of outputs per laborer for Questions Bread Cheese Canada 40 20 USA...

Use the following table of outputs per laborer for Questions

Bread Cheese

Canada 40 20

USA 30 10

A. Which nation has the absolute advantage in which products? Comparative advantage in which products? Briefly explain.

B. Suppose Bread is relatively capital intensive and Cheese is relatively labor intensive. Based on the chart and Heckscher-Ohlin, which country is relatively labor-resource rich? Which is relatively capital-resource rich? What should happen to the prices of each resource in each country as they start trading which each other?

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