... production. For example, a country with superior technology might have both a higher wage rate and a higher rental rate than a country with an infe-rior technology. As described later in this chapter, ... food and cloth when faced with the same relative price of thetwo goods. They also have the same technology: A given amount of land and labor yieldsthe same output of either cloth or food in the ... later in this chapter, recent work suggests that it is essen-tial to allow for such differences in technology to reconcile the factor proportions modelwith actual data on world trade.3. Finally,...