Since the production of clothing is labor-intensive relative to the production of wheat and China is labor-abundant relative to most countries, we would expect China to export clothing.

Question

Quizplus · Accepted Answer

This statement is true based on the theory of comparative advantage, which suggests that countries will specialize in producing and exporting goods that they can produce most efficiently, based on their relative abundance of factors of production (such as labor). Since China has an abundant supply of labor, it makes sense for them to specialize in and export labor-intensive goods like clothing.

Since the Production of Clothing Is Labor-Intensive Relative to the Production