Switzerland produces both watches and chocolate. Watches are relatively capital intensive in their production, while chocolate is relatively labor intensive. If Switzerland experiences an increase in its labor endowment, according to the Rybczynski theorem:

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The Rybczynski theorem states that, at constant product prices, an increase in the endowment of a factor (in this case, labor) will lead to an increase in the output of the good for which that factor is intensively used (chocolate, which is labor-intensive) and a decrease in the output of the other good (watches, which are capital-intensive).

Switzerland Produces Both Watches and Chocolate