Malaysia is relatively abundant in labor, whereas Canada is
Relatively abundant in capital.In both countries, shirt
Production is relatively more labor intensive than computer
Production.According to the HeckscherOhlin model,
Malaysia will have a(n) ________ advantage in the
Production of __________.

Question

Malaysia is relatively abundant in labor, whereas Canada is
Relatively abundant in capital.In both countries, shirt
Production is relatively more labor intensive than computer
Production.According to the Heckscher­Ohlin model,
Malaysia will have a(n) ________ advantage in the
Production of __________.

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model, a country will have a comparative advantage in producing goods that use its abundant resources intensively. Malaysia, being labor-abundant, will have a comparative advantage in producing shirts, which are labor-intensive.

Malaysia Is Relatively Abundant in Labor, Whereas Canada Is