A country is likely to have a comparative advantage in a capital-intensive activity if it has:

Question

Quizplus · Accepted Answer

A country with a large amount of capital relative to its landmass is likely to have a comparative advantage in a capital-intensive activity because it can use its resources more efficiently to produce goods and services that require a lot of capital investment. This allows the country to produce these goods at a lower cost and thus sell them at a lower price, making them more competitive in the global market.

A Country Is Likely to Have a Comparative Advantage in a Capital-Intensive