Question 1 Look at the table below. Physical Capital Researchers Skilled Unskilled GDP Labor Labor USA 25 26 27 2 China 10 17 8 18 Japan 12 11 5.8 2 226 20 15 India 4 3 6 30 5 Germany 8 6 3 1 4.5 In the table above each number represents a country's share in the world endowment of a factor production or GDP. For example, number 25 in the row for USA and the column for Physical Capital says that the US owns 25% of the world endowment of physical capital. Based on these numbers and your knowledge of the Heckscher-Ohlin model, answer the following questions. a) Which countries should be exporting the services of Physical capital? b) Which countries should be importing the services of Researchers? c) Which countries should be exporting the services of skilled labor? d) Which countries should be exporting the services of unskilled labor? Question 2 k According to the Heckscher-Ohlin model with 2 goods and 2 factors (capital and labor), the movement of Mexican migrants to the US would increase the production of the labor-intensive goods in the US. True or False? Which theorem would you use to answer this question? Suppose the US is a closed economy. What should be the impact of this migration on the relative price of the labor-intensive good? What should happen to the relative and real reward of labor in the US?