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LCD TVs Are Capital Intensive, and Tennis Rackets Are Labor

Question 31

Multiple Choice

LCD TVs are capital intensive, and tennis rackets are labor
Intensive.Suppose Canada has $100 billion of capital and 2
Million workers and Mexico has $10 billion of capital and 20
Million workers.According to the HO model:


A) Canada will specialize in and export LCD TVs.
B) Mexico will specialize in and export LCD TVs.
C) Canada will specialize in and export tennis rackets.
D) Mexico will import tennis rackets.

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