The infusion of massive inlemational capital into capital-wanting COUnlries irons up the diffcrcnce of real capita1 costs among countries. Labor cost becomes the dominant factor in determining a country's cost competitiveness. The countries with the lowest wage and the most abundant labor supply become world's manufacturing re so and cast serious threat on the employment of 10w-skill workcrs in the capita1 out-tlowing countries. To combat the deterioration of 1abor demand in the rc1ative1y capitaJ countrics ，出is study suggests exp10iting the economies of scale in those produc with their per capita capital requirement matching the country's capital labor cndowment ratio. Instead of diversifying into a wide iety of products as dictated by the Heckschcr-Ohlin eo the specialization in the products with their factor requiremcnts conforming to its endowed rcsources can tolerate a high domestic wage and secure its labor employrnent. Thc more mobilc the intemational capital becomes, the greatcr the need for the convergcnce of a country's product factor requirement ratio to its endowed one.