Malaysia is relatively abundant in labor, whereas Canada is relatively abundant in capital. In both countries, shirt production is relatively more labor intensive than computer production. According to the Heckscher-Ohlin model, Malaysia will have a(n) ________ advantage in the production of __________.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model suggests that countries will specialize in and export goods that utilize their abundant factors of production more intensively. Since Malaysia is abundant in labor and shirt production is more labor-intensive, Malaysia will have a comparative advantage in producing shirts.

Malaysia Is Relatively Abundant in Labor, Whereas Canada Is Relatively