Consider Two Products, Automobiles and Shoes.If Shoes Are

question 101

Multiple Choice

Consider two products, automobiles and shoes.If shoes are
Labor intensive and automobiles are capital intensive, what
Will happen under the HO model?

• A)The labor­abundant country will export automobiles.
• B)The capital­abundant country will export shoes.
• C)The labor­abundant country will import shoes.
• D)The capital­abundant country will import shoes.

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Definitions:

Taxes Paid

The total amount of taxes remitted to the government by an individual or organization, including income, sales, and property taxes.

Cash Flow to Stockholders

The amount of cash a company pays out to its shareholders, including dividends and net share buybacks.

Dividends Per Share

The amount of dividends paid out to shareholders per share of the company’s stock.

Financial Leverage

The use of borrowed funds in an attempt to increase the return on equity, involving higher risk but potentially higher returns as well.