1.7 Based on the assumptions, propositions and theory which underpin factor abundance and the Hecksher-Ohlin trade model assume country A's wage-rental ratio is initially lower than country B's wage-rental ratio (under autarky). When these countries freely trade with each other the relative price ratio will be higher in country A than B and the difference in wage-rental ratio will also increase between the two countries. Country A's capital-holders and workers will also protest against free trade between the two countries. [8]