Suppose That Ecuador Is a Labor-Abundant Country and Chile Is

Multiple Choice

Suppose that Ecuador is a labor-abundant country and Chile is a capital-abundant country. If Ecuador and Chile trade with one another then:

A) labor would tend to get more expensive in Ecuador.
B) capital would tend to get more expensive in Ecuador.
C) labor would tend to get more expensive in Chile.
D) capital would tend to get cheaper in Chile.
E) both labor and capital would get cheaper in Chile.