If jetliners are a capital-intensive product, and the United States exports jetliners, then the Heckscher-Ohlin theory predicts that the United States is
A) a labor abundant country.
B) a land abundant country.
C) a capital abundant country.
D) an energy abundant country.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin theory, countries that export capital-intensive products are capital abundant countries. Since the United States exports jetliners, which are capital-intensive products, it can be inferred that the United States is a capital abundant country.

If Jetliners Are a Capital-Intensive Product, and the United States