Problem
1. Suppose that a labor-abundant country and a land-abundant country both produce labor- and land-intensive goods with the same technology. Drawing on the analysis, first analyze the conditions under which trade between the two countries eliminates the incentive for labor to migrate. Then, using the analysis, show that a tariff by one country will create an incentive for labor migration.
2. Explain the analogy between international borrowing and lending and ordinary international trade.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.