What Does the HO Model Predict Will Happen to the Real

Multiple Choice

What does the HO model predict will happen to the real
Returns to factors of production after trade occurs?

A) Labor and capital must be used together in production, and there is no room for competition for remuneration.
B) Capital owners always get the "gains from trade."
C) Resources used intensively in export industries (such as labor in China and capital in the United States) will see an
Increase in their returns, whereas the resources used
Intensively in import­competing industries will see a
Decline in their return.
D) Poor nations will always get the least returns to their factors of production.