India exports shirts, which are labor-intensive, to the United States. The likely source of India's comparative advantage in shirts is:

Question

Quizplus · Accepted Answer

India has a comparative advantage in shirts because it is a labor-abundant country, implying that it has a larger supply of workers relative to other factors of production (such as capital and technology). Shirts are labor-intensive goods, meaning that a higher proportion of production costs come from labor. Thus, a labor-abundant country like India can produce shirts at lower costs than a labor-scarce country like the United States, where capital and technology are relatively more abundant.

India Exports Shirts, Which Are Labor-Intensive, to the United States