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As both countries concentrate (this does not mean completely) on their good basket, the Stolper-Samuelson theorem tells us that an increase in the price of a good caises an increase in the price of the factor used intensively in that industry and a decrease in the price of the other factor. This essentially means that both countries will see higher real wages as a result and both benefit.
A perfect example of how free trade works is East Asia. Fishing villages transformed overnight by following this theory to the letter. Problem is some countries do not follow it to the letter and then turn back to blame it.
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