Relative to Kenya, Japan has relatively higher economies of large-scale production, an abundance of resources, higher labor costs, and more research and development.The Heckscher-Ohlin theory explains Japan's comparative advantage over Kenya as the result of differences in countries'
A) economies of large-scale production.
B) relative abundance of various resources.
C) relative costs of labor.
D) research and development.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory explains comparative advantage based on differences in relative resource abundance between economies. Japan is said to have a comparative advantage in the production of goods which are relatively intensive in capital and skilled labour, due to their abundance of these resources compared to Kenya.

Relative to Kenya, Japan Has Relatively Higher Economies of Large-Scale