Meitneria and Seaboria Specialize in the Production of Heavy Machinery

question 48

Multiple Choice

Meitneria and Seaboria specialize in the production of heavy machinery and textiles respectively.While Meitneria doesn't produce textiles,Seaboria is not as technologically advanced as Meitneria.In this situation,according to the Heckscher-Ohlin theory

• A)Meitneria will import textiles from Seaboria and export heavy machinery to it.
• B)Meitneria will invest more than Seaboria in the production of textiles to exploit its comparative advantage.
• C)Meitneria and Seaboria will raise their trade barriers to protect their economies.
• D)Seaboria will recruit experts from Meitneria to specialize in the production of heavy machinery.
• E)Meitneria will recruit workers from Seaboria to improve its standing in the textile industry.

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Definitions:

Employee Ownership

Business ownership in which workers own shares of stock in the company that employs them.

Subchapter S Corporation

A form of corporation in the United States that meets specific Internal Revenue Code requirements, allowing it to be taxed as a pass-through entity, thus avoiding double taxation.

Shareholders

Individuals or entities that own one or more shares of stock in a company, and therefore have a financial interest in its performance.

Cooperative

Organization whose owners join forces to collectively operate all or part of the functions in their business.