U.S. exports are less capital-intensive than U.S. imports, despite the relative abundance of capital in the country. This is in opposition to the Heckscher-Ohlin theory and has been labelled
A) a zero-sum game.
B) Leontief's paradox.
C) a positive-sum game.
D) Samuelson's critique.
E) a first-mover advantage.

Question

Quizplus · Accepted Answer

Leontief's paradox is the empirical finding that U.S. exports are less capital-intensive than its imports, which contradicts the Heckscher-Ohlin theory that suggests a country will export goods that use its abundant factors intensively.

US Exports Are Less Capital-Intensive Than U