SCENARIO: CHILE AND THE UNITED STATES

Multiple Choice

SCENARIO: CHILE AND THE UNITED STATES
Chile and the United States use capital and labor to
Produce wheat and automobiles.The United States is
Capital abundant, and Chile is labor abundant.Wheat
Production is more labor intensive than automobile
Production.
Reference: Ref 4­8
(Scenario: Chile and the United States) According to the
Heckscher­Ohlin model:

A) Chilean workers should support U.S.­Chile free trade.
B) Chilean owners of capital should support U.S.­Chile free trade.
C) U.S.owners of capital should oppose U.S.­Chile free trade.
D) both U.S.and Chilean owners of capital should oppose U.S.­Chile free trade.