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If we see in comparison of the ratio of endowments of both the countries the Shire is more depend on the land abundant. But in Gondor are not focused on the land abundant.
2. The production of cloth is labor intensive. (Hint: you need to calculate the ratio of the factors needed in producing each good and compare them)
If we see the labor as the production factor used largely by Shire and Gondor, like shire used for cloth production 20 hours of labor and 5 acres of land and at same time the Gondor also used more labor for production of cloths....