Contrary to what the Heckscher-Ohlin theory would predict,the United States has been a primary importer rather than an exporter of capital goods.This phenomenon is referred to as the __________ paradox.

Question

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The Leontief paradox refers to the phenomenon where a country with ample labor resources tends to export labor-intensive goods and import capital-intensive goods, as opposed to the predictions of the Heckscher-Ohlin theory. In the case of the United States, the paradox refers specifically to their importation of capital goods despite being a capital-rich country.

Contrary to What the Heckscher-Ohlin Theory Would Predict,the United States