The country of Dalima has long been a substantial exporter of agricultural goods,reflecting its unusual abundance of arable land; in contrast,its continental neighbor,Bundeeza,has excelled in the export of goods produced in labor-intensive manufacturing industries.The export policies of the two countries is best explained by

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory explains that countries export goods that use their abundant and cheap factors of production. Dalima exports agricultural goods due to its abundance of arable land, while Bundeeza exports labor-intensive manufactured goods due to its labor resources.

The Country of Dalima Has Long Been a Substantial Exporter