Use the Heckscher-Ohlin Theory. Australia and China trade coal and computers. Coal is the labor-intensive good, and China is the capital-abundant country. A. In autarky, which country has the higher wage to rental rate ratio? Which theorem states that free trade leads to an equalization of wages and rental rates in two trading countries? Explain the process by which wages and rental rates ultimately equalize. B. According to this model, would laborers in both Australia and China benet from trade? If there is a theorem that helps you answer this question, please state it. C. What happens to production of both goods in Australia if there is an increase in the capital stock? State the theorem that you used to answer this