In general, a capital-abundant country (such as the United States) tends to specialize in capital-intensive industry and export capital-intensive products, and import labor-
Intensive products. This statement is an illustration of the ____________________
Of comparative advantage.

Question

Quizplus · Accepted Answer

This statement is an illustration of the factor endowment theory of comparative advantage, which suggests that a country will specialize in and export goods that use its abundant factor (in this case, capital) and import goods that use its scarce factor (in this case, labor).

In General, a Capital-Abundant Country (Such as the United States)