Multiple Choice
LCD TVs are capital intensive, and tennis racquets are labor intensive. Suppose Canada has $100 billion of capital and 2 million workers and Mexico has $10 billion of capital and 20 million workers. According to the Heckscher-Ohlin model:
A) Canada will specialize in and export LCD TVs.
B) Mexico will specialize in and export LCD TVs.
C) Canada will specialize in and export tennis racquets.
D) Mexico will import tennis racquets.
Correct Answer:
Verified
Correct Answer:
Verified
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