If jetliners are a capital-intensive product for the United States,then in terms of the Heckscher-Ohlin theory the United States should be
A) a labor abundant country
B) a land abundant country
C) a capital abundant country
D) an energy abundant country

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory states that countries will export goods that use their abundant factors of production more intensively and import goods that use their scarce factors of production more intensively. Jetliners are a capital-intensive good, meaning they require a large amount of capital relative to other factors of production such as labor or land. Therefore, the United States, which is a country with a relatively large amount of capital in comparison to other factors of production, should be a capital-abundant country.

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