The Stolper-Samuelson Theorem Predicts That Free Trade Between the United

Multiple Choice

The Stolper-Samuelson theorem predicts that free trade between the United States, a capital-abundant country, and Mexico, a labor-abundant country, would ultimately result in:

A) higher wages in both countries.
B) lower wages in both countries.
C) higher wages in Mexico and lower wages in the United States.
D) lower wages in Mexico and higher wages in the United States.