If home is capital abundant, then when it begins to freely trade with the rest of the world, the return to capital in home should rise and the real wage in home should fall.
In comparison to another country, a country is said to be capital abundant if it has a higher capital endowment per labor endowment. is one that, in comparison to the other countries, has a strong capital base.
The H-O theorem states that nations should specialize in and export the good that uses the relatively abundant ingredient most frequently. Due to the fact that Belgium is the capital-rich nation by physical definition, Belgium should export things that require a lot of capital to France. Italy has a reasonably capital abundant labor pool, and France has a comparatively ample capital pool.
Learn more about capital abundant here
https://brainly.com/question/20714253
#SPJ4
