First, both countries have more labor than machines. But country A's labor-capital ratio is
three-to-one, while B's is only two-to-one. Thus country A is relatively labor abundant, and
country B must be relatively capital abundant. Alternatively, country A has three thousand
workers for every machine (45,000,000/15,000), while country B has two thousand workers
per machine. Thus country B is relatively capital abundant, and country A is relatively
labor abundant.
From the HO theorem, we know the labor-abundant country A will have comparative
advantage in the relatively labor-intensive good (T), and the capital-abundant country B will
have comparative advantage in the relatively capital-intensive good (S).