Answer of the following questions True, False or Uncertain and briefly explain your answer. If a question is True or False explain why. If a question is true or false depending on some values of a parameter, explain. If an exogenous price or quantity is not explicitly indicated as changing, you should take it as unchanged.

If initially the foreign country is relatively capital abundant, and capital can (suddenly) move across countries, then we expect that the foreign country will benefit as both its labour and capital earnings will increase and home country income will fall as capital loses.