Before we get to these issues, however, let us get the model stated. Suppose that there are two countries. One of them we again call home and the other we call foreign. Each of these countries has one factor of production and can produce two goods, wine and cheese. As before, we denote home’s labor force by L and home’s unit labor requirements in wine and cheese production by a_LW and a_LC, respectively. For foreign we will use a convenient notation throughout this book: when we refer to some aspect of foreign, we will use the same symbol that we use for home, but with and asterisk. Thus foreign’s labor force will be denoted by L; foreign’s unit labor requirements in wine and cheese will be denoted by a_LW and a_LC respectively, and so on.