Considering the United States to be a capital-abundant country, which of the following facts would contradict the predictions of the Heckscher-Ohlin theory?
A)The United States is a net importer of labor-intensive products.
B)The United States is a net importer of products that use farmland intensively.
C)The United States is a net importer of certain natural resources such as petroleum.
D)The United States is a net importer of capital-intensive products.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory predicts that countries will export goods that utilize their abundant factors of production more intensively. Since the United States is considered a capital-abundant country, it would be expected to export capital-intensive products rather than import them, making choice D a contradiction to the theory's predictions.

Considering the United States to Be a Capital-Abundant Country, Which