Watches Are Relatively Capital Intensive in Their Production Process, While

Multiple Choice

Watches are relatively capital intensive in their production process, while handbags are relatively labor intensive. Switzerland is a relatively capital abundant nation. If Switzerland experiences an increase in its labor endowment then, according to the Rybczynski theorem, we would expect:

A) both the exports and imports of Switzerland to rise.
B) both the exports and imports of Switzerland to decline.
C) the exports of Switzerland to rise and the imports to decline.
D) the exports of Switzerland to decline and the imports to rise.