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Assume a two-country, two-good, two-factor of production world with the countries being the United States and the Rest of the World, the two goods being

Assume a two-country, two-good, two-factor of production world with the countries being the United States and the Rest of the World, the two goods being steel and wheat, and the two factors of production being capital and land. If the United States was capital-abundant and steel production was capital-intensive, the Heckscher-Ohlin model would predict that the Rest of the World would export __________ and import __________.

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Steel; wheat

Wheat; steel

Steel; steel

Wheat; wheat

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