If the U.K. is labor abundant (capital scarce) and Nigeria is capital abundant (labor scarce), which of the following statements is true?
A) The U.K. would tend to have a comparative advantage in capital-intensive products.
B) Nigeria would tend to have a comparative advantage in labor-intensive products.
C) The U.K. would tend to import capital-intensive products.
D) Nigeria would tend to import capital-intensive products.
E) All of the above

Question

Quizplus · Accepted Answer

The U.K., being labor abundant, would have a comparative advantage in labor-intensive products and would import capital-intensive products.

If the UK Is Labor Abundant (Capital Scarce) and Nigeria Is Capital