According to the Heckscher-Ohlin model,Brazil will have a comparative advantage in oranges if the factors that are _____ in the production of oranges are _____.

Question

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According to the Heckscher-Ohlin model, a country will have a comparative advantage in producing goods that utilize factors of production that are abundant or more available in that country. Oranges are an agricultural product and require abundant land and labor for production. Brazil is a country with ample land and a relatively abundant labor force. Therefore, Brazil is likely to have a comparative advantage in producing oranges if the factors that are intensive in orange production, such as land and labor, are abundant in Brazil. Choice A correctly identifies that Brazil will have a comparative advantage in oranges if the factors that are intensive in the production of oranges, i.e., land and labor, are abundant in Brazil.

According to the Heckscher-Ohlin Model,Brazil Will Have a Comparative Advantage