If Gambinia has many workers but very little land and even less productive capital,then,following the Heckscher-Ohlin model,we predict that Gambinia will export
A) labor-intensive goods.
B) capital-intensive goods.
C) both capital- and land-intensive goods.
D) land-intensive goods.
E) both labor- and land-intensive goods.

Question

Quizplus · Accepted Answer

According to the Heckscher-Ohlin model, a country that possesses abundant labor will specialize in producing and exporting labor-intensive goods. Since Gambinia has many workers but very little land and productive capital, it is likely that the country will specialize in producing goods that require labor rather than capital or land. Therefore, the best choice is A) labor-intensive goods.

If Gambinia Has Many Workers but Very Little Land and Even