A country with relatively abundant supplies of labour is unlikely to have a comparative advantage in the production of labour-intensive goods as a result.

Question

Quizplus · Accepted Answer

A country with abundant supplies of labor has a comparative advantage in the production of labor-intensive goods. The availability of labor provides a cost advantage in producing goods that require significant manual labor. Therefore, such a country is more likely to specialize in the production of labor-intensive goods and have a comparative advantage in that sector.

A Country with Relatively Abundant Supplies of Labour Is Unlikely