If Gambinia Has Many Workers but Very Little Land and Even

question 45

Multiple Choice

If Gambinia has many workers but very little land and even less productive capital,then,following the Heckscher-Ohlin model,in order to improve the country's economic welfare,the Gambinian government should

• A) engage in free trade.
• B) protect the capital-intensive product.
• C) protect the land-intensive product.
• D) protect the labor-intensive product.
• E) discontinue all international trade.

---

Definitions:

Service Businesses

Companies that earn revenue primarily through providing intangible products, such as services or expertise, rather than selling physical goods.

Merchandising Business

A type of business that purchases products from other businesses and sells them to customers.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and their transportation costs as soon as they leave the seller's premises.

Freight

The charge paid for transport of goods by sea, air, or land.