LCD TVs Are Capital Intensive, and Tennis Rackets Are Labor

question 48

Multiple Choice

LCD TVs are capital intensive, and tennis rackets are labor
Intensive.Suppose Canada has $100 billion of capital and 2
Million workers and Mexico has $10 billion of capital and 20
Million workers.According to the HO model:

• A)Canada will specialize in and export LCD TVs.
• B)Mexico will specialize in and export LCD TVs.
• C)Canada will specialize in and export tennis rackets.
• D)Mexico will import tennis rackets.

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Definitions:

Indentured Servants

Individuals who agreed to work for a specific number of years in exchange for passage to the New World and eventual freedom.

Gradual Emancipation

A legal process implemented in various jurisdictions to end slavery over time, often by stipulating that children born to enslaved mothers would be free after a certain age.

Mid-Atlantic Region

An area of the United States that includes states like New York, New Jersey, and Pennsylvania, known for its significant cultural and economic contribution.

Civil War

In United States history, refers to the conflict between the Northern states (Union) and the Southern secessionist states (Confederacy) from 1861 to 1865, primarily over the issues of states' rights and slavery.