Assume that Sweden is relatively capital abundant, and that Laos is relatively labor abundant. If free trade were to open up between these two countries:
a) the relative price of the capital-intensive product would rise in Sweden
b) the relative price of the capital-intensive product would fall in Sweden
c) the relative price of the capital-intensive product would rise in Laos
d) the relative price of the capital-intensive product would fall in Laos
e) the relative price of the labor-intensive product would rise in Sweden
f) the relative price of the labor-intensive product would rise in Laos
g) the relative price of the labor-intensive product would fall in Laos
h) wages rise in Sweden
i) wages fall in Sweden
j) wages rise in Laos
k) wages fall in Laos
l) capital rents rise in Sweden
m) capital rents fall in Sweden
n) capital rents rise in Laos
o) capital rents fall in Laos
p) none of these