If a country is abundant in labor then it would tend to:
A) import labor-intensive products.
B) export labor-intensive products.
C) export capital-intensive products.
D) both export and import labor-intensive products.
E) not import either product.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model in international trade theory, a country abundant in a particular factor of production (in this case, labor) will tend to export goods that are intensive in that factor. Therefore, a labor-abundant country will tend to export labor-intensive products.

If a Country Is Abundant in Labor Then It Would