If Gambinia has many workers but very little land and even less productive capital,then,following the Heckscher-Ohlin model,in order to improve the country's economic welfare,the Gambinian government should
A) engage in free trade.
B) protect the capital-intensive product.
C) protect the land-intensive product.
D) protect the labor-intensive product.
E) discontinue all international trade.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model, a country should specialize in and export goods that use its abundant factors intensively. Since Gambinia has an abundance of labor, it should engage in free trade to export labor-intensive goods, improving economic welfare.

If Gambinia Has Many Workers but Very Little Land and Even