Assume that Australia is relatively labor abundant, and that Belgium is relatively capital abundant. If free trade were to open up between these two countries, What would be the likely effect on the labor market in Australia?
1) The labor market in Australia would benefit from increased job opportunities.
2) The labor market in Australia would experience a decrease in wages.
3) The labor market in Australia would remain unchanged.
4) The labor market in Australia would face increased competition from Belgian workers.