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3. Heckscher-Ohlin theory, Stolper-Samuelson theorem, and opinions about free trade Suppose China signs a free trade agreement with Japan. As a result, China's exports of

3. Heckscher-Ohlin theory, Stolper-Samuelson theorem, and opinions about free trade Suppose China signs a free trade agreement with Japan. As a result, China's exports of textiles (which are intensive in labor) and its imports of cars (which are intensive in capital) both increase. According to the Heckscher-Ohlin theory, China is abundant in

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