Let Us Assume That Cloth-Making (Labor-Intensive) and Farming (Land-Intensive) Are

Multiple Choice

Let us assume that cloth-making (labor-intensive) and farming (land-intensive) are the only two sectors of production in a country. If this country is labor-abundant, and if trade corresponds to the Heckscher-Ohlin theory, which of the following groups will gain in the short-run, but lose in the long-run, from the opening of trade?

A) Domestic landowners in the farming sector
B) Domestic landowners in the cloth-making sector
C) Foreign landowners in the farming sector
D) Foreign workers in the cloth-making sector