Page 1 and 2: Describe the doll production process based on the movie.

Then describe the car production process based on the movie.

Then explain your understanding of the capital-intensity or labor-intensity of the two industries.

Set-up a hypothetical 2X2 matrix of (2 industries) X (2 inputs) to illustrate which industry is more labor intensive and which industry is more capital intensive. Explain your calculations using a few sentences.

Page 3: Consider two countries USA and China. Explain which of these countries you think is labor abundant and which is capital abundant.

Based on the factor-endowments of the countries and the factor intensities of the industries, predict the pattern of trade using the graphical representation of the Hecksher-Ohlin model. I have provided a diagram below for you to interpret in the current context. Copy and paste the diagram into the 3rd page of your writing assignment. Label axes, PPFs and anything that you think would help customize this diagram for the case that you are studying. Provide verbal explanation that covers explanation of the *PPFs, relative prices in *autarky and *trade, *production and *consumption in *autarky and *trade and *trade triangles. Make sure the connection between factor intensity and factor abundance concepts is clear in your explanation.

Page 4: Next search the internet for facts and statistics about the TOY- EXPORTS by China and create a half page summary of the information you gather. Cite the websites used for the source of the information, in footnotes. Do not copy-paste from any website: synthesize and organize the information from different websites to form your summary of the industry.

Next search the internet for facts and statistics about the TOY- IMPORTS by USA and create a half page summary of the information you gather, citing your sources as above.

Page 5: Next search the internet for facts and statistics about the CAR-IMPORTS by China and create a half page summary of the information you gather, citing your sources as above.

Next search the internet for facts and statistics about the CAR-EXPORTS by USA and create a half page summary of the information you gather, citing your sources as above.

Doll production

Car production

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