Suppose that there are two factors, capital and land, and that the United States is relatively capital abundant while Canada is relatively land abundant. According to the HO model,
A) Canadian landowners should support Canada-U.S. free trade.
B) Canadian capital owners should oppose Canada-U.S. free trade.
C) U.S. capital owners should support Canada-U.S. free trade.
D) All of the above.
ANSWER
D
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