Relative capital abundant country

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Reference no: EM131095122

Given that China is a relative labor abundant country and Taiwan is a relative capital abundant country. According to the Heckscher-Ohlin Model, China should export labor intensive product and Taiwan should export capital intensive product. Therefore, the demand of output of labor intensive product in Taiwan should ______(increase or decrease); the wage rate in Taiwan should ________(increase or decrease); the demand of output of capital intensive product in Taiwan should _________(increase or decrease); the return rate of capital should ________(increase or decrease).

Reference no: EM131095122

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