TRUE/FALSE & SHORT ANSWER

Consider an economy with two production sectors, Cloth (C) and Artificial Intelligence (AI), and two production factors, labor and capital (including intellectual capital) . Assume that AI is capital intensive and that capital in each sector is fixed. Then, in a relatively capital abundant economy (e.g., US), the freeing of trade will be beneficial for capitalists in AI but will hurt capitalists in the Cloth sector.

True or False? Briefly Explain