Assume That Mexico Is Labor Abundant and the U

Multiple Choice

Assume that Mexico is labor abundant and the U.S. is capital abundant. Trade between Mexico and the U.S. would tend to:

A) lower the price of capital in Mexico.
B) raise the price of capital in Mexico.
C) raise the price of labor in the U.S.
D) lower the price of capital in the U.S.
E) lower the prices of both factors in Mexico.