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2. In the specific factors model, suppose that a wave of foreign direct investment suddenly increases the availability of capital in the cotton cloth sector
2. In the specific factors model, suppose that a wave of foreign direct investment suddenly increases the availability of capital in the cotton cloth sector in the North. How would that affect the distribution of income in the North? Specifically, what would it do to the real income of the North workers and capitalists in the cotton cloth industry? How would it affect the distribution of income between workers in the North and in the South?
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