Multiple Choice
Consider two products: automobiles and shoes. If shoes are labor intensive and automobiles are capital intensive, what will happen under the Heckscher-Ohlin model?
A) The labor-abundant country will export automobiles.
B) The capital-abundant country will export shoes.
C) The labor-abundant country will import shoes.
D) The capital-abundant country will import shoes.
Correct Answer:
Verified
Correct Answer:
Verified
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