Assume That the U

Multiple Choice

Assume that the U.S. is relatively capital abundant, and Mexico is relatively labor abundant. Further, assume that the production of wheat is capital intensive and the production of iron is labor intensive. Which of the following would be true?

A) Mexico would tend to export wheat.
B) Mexico would tend to import wheat.
C) The U.S. would tend to export iron.
D) The U.S. would tend to import wheat.
E) Mexico would import both iron and wheat.