If Canada is relatively capital abundant and Mexico is relatively labor abundant, this means that the capital-to-labor ratio in Canada is greater than the capital-to- labor ratio in Mexico.

Question

Quizplus · Accepted Answer

This statement is true because a country being relatively capital abundant means it has more capital per unit of labor compared to another country, hence a higher capital-to-labor ratio.

If Canada Is Relatively Capital Abundant and Mexico Is Relatively