Shoes are labor-intensive and satellites are capital-intensive to produce. The United States has abundant capital. China has

Question:

Shoes are labor-intensive and satellites are capital-intensive to produce. The United States has abundant capital. China has abundant labor. According to the Heckscher-Ohlin model, which good will China export? Which good will the United States export? In the United States, what will happen to the price of labor

(the wage) and to the price of capital?

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