Assuming TOT (terms of trade) Px/Py is 0.75, which country will gain more from free trade and why?

In the context of international trade, what does a trade surplus indicate for a country? A. Exports exceed imports B. Imports exceed exports C. No trade is occurring D. Both imports and exports are zero

Suppose two countries, A and B, trade two goods, Good 1 and Good 2. Production of both goods requires capital (K) and labor (L) and production of one unit of Good 1 requires more capital relative to labor than production of one unit of Good 2. We also know that ΚΑ > KB, where upper bars denote the total amount of a factor in a country. LB LA State the Heckscher-Ohlin theorem. What does it predict about trade patterns between countries A and B once they open up for trade? ii. Using a production possibility frontier and an indifference curve, draw a diagram that shows no-trade and free-trade equilibrium in country A.