U.S.exports are less capital-intensive than U.S.imports,despite the relative abundance of capital in the country.This phenomenon that runs contrary to the prediction of the Heckscher-Ohlin theory is termed as _____.

Question

Quizplus · Accepted Answer

The Leontief paradox refers to the phenomenon of a country with a higher capital-to-labor ratio having lower capital-intensive exports than its imports, which contradicts the Heckscher-Ohlin theory. It is named after its discoverer Wassily W. Leontief.

USExports Are Less Capital-Intensive Than U