Which theory explains why China's low labor costs have attracted toy, footwear, and textile manufacturers to develop manufacturing facilities in China?

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory suggests that countries will export goods that intensively use factors of production in which they are abundant and import goods that intensively use factors of production in which they are scarce. China has an abundance of low-cost labor, which makes it an attractive location for manufacturers of labor-intensive goods like toys, footwear, and textiles.

Which Theory Explains Why China's Low Labor Costs Have Attracted