If Japan is relatively capital rich and the United States is relatively land rich,and if food is relatively land intensive then trade between these two,formerly autarkic countries will result in

Question

Quizplus · Accepted Answer

Japan is capital rich and the United States is land rich. Food is land intensive. So, Japan will export capital-intensive goods to the United States, and the United States will export land-intensive goods to Japan. This will lead to an increase in the relative price of food in the United States.

If Japan Is Relatively Capital Rich and the United States