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Suppose that there are two production factors, capital and land, and that the United States is relatively land-abundant while the European Union is relatively capital-abundant.

Suppose that there are two production factors, capital and land, and that the United States is relatively land-abundant while the European Union is relatively capital-abundant. According to the Heckscher-Ohlin model,

a) All capitalists in both countries should support free trade.

b) European capitalists should support US-European free trade.

c) European landowners should support US-European free trade.

Choose a, b, or c

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