If Country a Is Relatively Land-Abundant and Country B Is

question 11

True/False

If country A is relatively land-abundant and country B is relatively labor-abundant, the Heckscher-Ohlin theory predicts that country A will export textiles (a relatively labor-intensive good) and country B will export corn (a relatively land-intensive good).

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Definitions:

Cost of Lumber

The expense associated with purchasing wood used for construction and manufacturing, which can vary based on supply and demand.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given point in time.

Supply

The total amount of a good or service available for purchase at any given price level within a defined market.

Income

The money received, especially on a regular basis, for work, through investments, or other sources.