Which of the Following Statements About the Specific-Factors Model Is

Multiple Choice

Which of the following statements about the specific-factors model is true?

A) When exports of a product rise, the increase in export revenue is divided equally among mobile and specific factors of production.
B) When imports rise, revenues of firms that compete with imports fall. The decrease in revenue is divided equally among the mobile and specific factors of production.
C) When exports of a product rise, factors specific to exports gain less than mobile factors; when imports rise, factors specific to import competing industries gain more than mobile factors.
D) When exports of a product rise, factors specific to exports gain more than mobile factors; when imports rise, factors specific to import competing industries lose more than mobile factors.