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Suppose China signs a free trade agreement with Japan. As a result, China's exports of textiles (which are intensive in labor) and its imports of
Suppose China signs a free trade agreement with Japan. As a result, China's exports of textiles (which are intensive in labor) and its imports of cars (which are intensive in capital) both increase. According to the Heckscher-Ohlin theory, China is abundant inlabor . Consistent with the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, which of the following groups in China will support its free trade agreement with Japan? Check all that apply. Consumers Workers in car production C
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