Suppose when Germany opens to trade, it imports shoes, which is a labor-intensive good.

(a) According to the Hecksher-Ohlin theorem, is Germany capital-abundant or labor-abundant?

Briefly explain.

(b) What is the impact of opening trade on the real wage in Germany?

(c) What is the impact of opening trade on the real rental on capital?

(d) Which group (capital owner or labor) would support policies to limit free trade? Briefly explain.