Assume that Country A is relatively abundant in capital and relatively scarce in land.According to the factor endowment theory,with free trade,the internal distribution of income in Country A will change in favor of:

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According to the factor endowment theory, in a country that is relatively abundant in capital, the increase in trade and specialization will increase the demand for the country's abundant factor (capital), leading to an increase in its price and an increase in the income of those who own it (capital owners). Therefore, free trade will benefit capital and its owners, while landowners may suffer a decrease in their income.

Assume That Country a Is Relatively Abundant in Capital and Relatively