Suppose country X is relatively labor abundant and relatively land scarce. Country Y, on the other hand, is relatively labor scarce and relatively land abundant. The production of corn is relatively land intensive while, the production of shoes is relatively labor intensive. Explain the short and long-run effects of opening to free trade between these countries on the incomes of: workers employed in the production of corn in each country; workers employed in the production of shoes in each country; land used in the production of corn in each country; and land used in the production of shoes in each country.

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The Answer of Suppose country X is relatively labor abundant and relatively land scarce. Country Y, on the other hand, is relatively labor scarce and relatively land abundant. The production of corn is relatively land intensive while, the production of shoes is relatively labor intensive. Explain the short and long-run effects of opening to free trade between these countries on the incomes of: workers employed in the production of corn in each country; workers employed in the production of shoes in each country; land used in the production of corn in each country; and land used in the production of shoes in each country.

Suppose Country X Is Relatively Labor Abundant and Relatively Land