Question $1.$ True or False. Briefly explain your judgements.

a$.$ If there are two goods, Apples $($A$)$ and Bananas $($B$),$ then Home has a comparative advantage in the production of apples if $P_B>P_B^W{P}_A{P}_B{P}_A^W{P}_B^W{P}_A$ and $P_B>P_B^W(where{P}_A$ and $P_B$ are domestic prices and $P_A^W$ and $P_B^W$ are world prices$).$

$b.$ Land and capital owners usually welcome foreign immigrants.

$c.$ Factors that can $be$ use$\frac{d}{e}$mployed $in$ the exporting industries will always gain from trade liberalization.

$d.In$ the Heckscher$-$Ohlin model, when a labor abundant country opens $to$ trade with the world, its wage rental ratio goes $up$ and every producer demands a higher labor$-$capital ratio.

$e.In$ the long run, international movement $of$ labor and capital will not affect the real wage and real capital rental across countries, but $it$ will affect the output $of$ goods produced across countries.

$f.In$ the short run, $an$ outflow $of$ capital $is$ expected $to$ cause $an$ increase $in$ the real rental $of$ capital and $an$ increase $in$ the real rental $of$ land $in$ the origin country.

$g.As$ China receives more and more FDI, under the assumptions $of$ Heckscher$-$Ohlin model, $it$ will produce more and more capital$-$intensive products.

$h.As$ the labor cost increases $in$ China, more activities will $be$ offshored $to$ other developing countries such $as$ Vietnam who has comparative advantage $in$ laborintensive tasks. This type $of$ offshoring will benefit the workers $in$ Vietnam and the capital owners $in$ China will also benefit.