According to the human skills theory
A)trade patterns depend upon a country's relative endowment of skilled workers.
B)countries with large endowments of skilled labor will have comparative advantage in skilled labor intensive products.
C)the Leontief paradox is explained by the fact that the United States is relatively skilled labor abundant.
D)All of the above.

Question

Quizplus · Accepted Answer

The human skills theory suggests that trade patterns are influenced by a country's relative abundance of skilled labor. Countries with more skilled labor are expected to have a comparative advantage in producing goods that require more skilled labor, which aligns with all the statements provided. The Leontief Paradox, which found the U.S. exported more labor-intensive goods despite being capital-abundant, can be explained by considering the U.S.'s abundance in skilled labor, making all the options correct under this theory.

According to the Human Skills Theory