Mexico has an abundance of unskilled labour and Canada has an abundance of skilled labour.The Heckscher-Ohlin model implies that trade between Canada and Mexico will lead to a decrease in the wages of unskilled labour in Canada and an increase in the wages of skilled labour in Canada.

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The Heckscher-Ohlin model predicts that countries will export goods that they have a comparative advantage in producing based on their factor endowments. Mexico's comparative advantage in unskilled labour-intensive goods and Canada's comparative advantage in skilled labour-intensive goods would lead to trade between these countries. According to the model, as a result of this trade, the demand for skilled labour increases in Mexico while the demand for unskilled labour increases in Canada, leading to an increase in the wages of skilled labour in Canada and a decrease in the wages of unskilled labour in Canada.

Mexico Has an Abundance of Unskilled Labour and Canada Has