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Question 2.
within a model of two countries producing three goods with two factors, both countries have identical edowments of factors and the same technology for each good. At any wage/rental ratio, k1>k2>k3, where k is the capital/ labor ratio used to produce good i ( i=1, 2, 3) . Given any set of relative prices for goods, C1/C2 is the same in both countries, but C2/C3 is lower in the foreign than in the home country, where C is the national consumption of good i (i =1, 2, 3). If good 3 is non-tradeble , which country exports good 2 in free-trade equilibrium?
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