During the past 10 to 20 years, a considerable amount
Of foreign capital has flowed into China.What is an
Implication of capital flow on the composition of
Chinese trade?
A)There should be no change in the composition of China's trade.
B)There should be a shift toward the export of more laborintensive products.
C)There should be a shift toward the export of more capitalintensive products.
D)There should be a shift toward the import of more capitalintensive products.

Question

During the past 10 to 20 years, a considerable amount
Of foreign capital has flowed into China.What is an
Implication of capital flow on the composition of
Chinese trade?
A)There should be no change in the composition of China's trade.
B)There should be a shift toward the export of more labor­intensive products.
C)There should be a shift toward the export of more capital­intensive products.
D)There should be a shift toward the import of more capital­intensive products.

Quizplus · Accepted Answer

As foreign capital flows into China, there is an increase in investment in capital-intensive industries. This leads to an increase in the production of capital-intensive products, which are then exported. Therefore, there should be a shift toward the export of more capital-intensive products, making choice C the best answer.

During the Past 10 to 20 Years, a Considerable Amount