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Meitneria and Seaboria Specialize in the Production of Heavy Machinery

Question 80

Multiple Choice

Meitneria and Seaboria specialize in the production of heavy machinery and textiles respectively.While Meitneria doesn't produce textiles,Seaboria is not as technologically advanced as Meitneria.In this situation,according to the Heckscher-Ohlin theory:


A) Meitneria will import textiles from Seaboria and export heavy machinery to it.
B) Meitneria will invest more than Seaboria in the production of textiles to exploit its comparative advantage.
C) Meitneria and Seaboria will raise their trade barriers to protect their economies.
D) Seaboria will recruit experts from Meitneria to specialize in the production of heavy machinery.
E) Meitneria will recruit worksmen from Seaboria to improve its standing in the textile industry.

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