In the Heckscher-Ohlin model assume there are two countries Home and Foreign who produce two goods, textiles (T) and cars (C). Suppose there are two inputs, Labour and Capital, and that textiles is more labour intensive than cars. Finally assume Foreign is capital abundant, i.e. its ratio of total capital to total labour is greater than in Home. What is the impact of trade on the returns to capital in the Foreign country
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