Which of the following states that free international trade reduces the real income of the nation's relatively scarce factor and increases the real income of the nation's relatively abundant factor?

Question

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The Stolper-Samuelson theorem states that free international trade increases the real income of a nation's relatively abundant factor and reduces the real income of the nation's relatively scarce factor. This occurs due to the change in relative prices, where the price of the relatively abundant factor increases and the price of the relatively scarce factor decreases. The Heckscher-Ohlin theory, on the other hand, states that a country will export goods that use its relatively abundant factor intensively and import goods that use its relatively scarce factor intensively. The differentiated product theorem is not a theory related to the impact of international trade on factors of production.

Which of the Following States That Free International Trade Reduces