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Assume That the United States Is Relatively Scarce in Labor

question 82

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Assume that the United States is relatively scarce in labor and relatively abundant in capital.According to the Heckscher-Ohlin theory, which of the following will occur in the United States in the presence of trade?


Definitions:

Purchases

The total amount of goods bought by a business for resale or production during an accounting period.

Gallon

A unit of volume for liquid measure in the United States, equal to 3.785 liters.

Gas

A state of matter characterized by high compressibility and expansion to fill any container, often used as a fuel.

Twenty-Dollar Bill

Currency note of the United States valued at twenty dollars, featuring the portrait of President Andrew Jackson.

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