Which of the following is most likely to be predicted by the Heckscher-Ohlin theory?
A)The industrialized nations will mainly export labor-intensive goods.
B)The developing countries will mainly export labor-intensive goods.
C)The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries.
D)Countries like the United States will completely specialize in the production of primary commodities.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin theory, countries will tend to export goods that utilize their abundant factors of production and import goods that utilize their scarce factors of production. Therefore, developing countries with a surplus of low-skilled labor are likely to export labor-intensive goods.

Which of the Following Is Most Likely to Be Predicted