Question: 1. Since 2000, the value of U.S. imports of men's and boy's apparel from China has more than tripled. What prediction does the Heckscher-Ohlin model make about the wages received by labor in China?
2. Shoes are labor-intensive and satellites are capitalintensive to produce. The United States has abundant capital. China has abundant labor. According to the Heckscher-Ohlin model, which good will China export? Which good will the United States export? In the United States, what will happen to the price of labor (the wage) and to the price of capital?