Consider a country that is labor abundant. According to the H-O model, opening up the country to trade will result in

Question 2 options:

A.an increase in the relative price of the capital-intensive good as well as an increase in the rental of capital.

B.an increase in the relative price of the capital-intensive good and a decrease in the rental of capital.

C.a decrease in the relative price of the capital-intensive good as well as decrease in the rental capital.