Using the HO Model,assume That the United States Is Capital

question 18

Multiple Choice

Using the HO model,assume that the United States is capital abundant and Mexico is labor abundant.If soybeans are capital intensive and avocados are labor intensive,it would be reasonable to expect the United States to

• A)specialize completely in soybean production.
• B)specialize completely in avocado production.
• C)increase soybean production, but still produce some avocados.
• D)increase avocado production, but still produce some soybeans.

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