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The Country of Dalima Has Long Been a Substantial Exporter

Question 35

Multiple Choice

The country of Dalima has long been a substantial exporter of seafood, reflecting its unusual abundance of coastal waters; in contrast, its continental neighbor, Bundeeza, has excelled in the export of goods produced in labor-intensive manufacturing industries. Based on this information, the export policies of the two countries is best explained by


A) mercantilism.
B) theory of absolute advantage.
C) Heckscher-Ohlin theory.
D) theory of comparative advantage.
E) Samuelson's critique.

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