Donald Trump argues that the U.S. loses manufacturing jobs trading with China. If this claim is correct, which of the following is true? Now, suppose capital is mobile and labor is sectoral specific.

Group of answer choices

1.Capital owners should all gain from trade.

2.Some workers gain and some workers lose.

3.The manufacturing sector will neither expand nor contract since labor is sectoral specific.

4All households should gain if they have large preference weights on manufacturing goods.

This is related to the specific factors model in international trade