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France produces agricultural products and manufactured products, using both labour and capital. When France engages in free trade, it starts exporting manufactured products, which is
France produces agricultural products and manufactured products, using both labour and capital. When France engages in free trade, it starts exporting manufactured products, which is capital intensive. In the long run, which one of the following scenarios is incorrect? France remains capital abundant. Allocation of French capital changes compared to autarky. O Real rental in the manufacturing industry increases more than the real rental in the agricultural industry. O Real wage in France falls
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