The conclusion that a laborabundant country exports the
Good using labor intensively in production and a capital
Abundant country exports the good using capital intensively
In production is known as:
A)factorintensity reversal.
B)the HeckscherOhlin theorem.
C)Riparian comparative advantage.
D)the StolperSamuelson theorem.

Question

The conclusion that a labor­abundant country exports the
Good using labor intensively in production and a capital­
Abundant country exports the good using capital intensively
In production is known as:
A)factor­intensity reversal.
B)the Heckscher­Ohlin theorem.
C)Riparian comparative advantage.
D)the Stolper­Samuelson theorem.

Quizplus · Accepted Answer

The statement describes the Heckscher-Ohlin theorem, which explains how factor abundance affects a country's exports and imports. Factor-intensity reversal refers to the phenomenon where the factor used more intensively in one country for a certain good becomes used more intensively in another country for the same good. Riparian comparative advantage and Stolper-Samuelson theorem are not relevant to the statement.

The Conclusion That a Labor­abundant Country Exports the

The Conclusion That a Laborabundant Country Exports the