Consider Two Products: Automobiles and Shoes

question 100

Multiple Choice

Consider two products: automobiles and shoes. If shoes are labor intensive and automobiles are capital intensive, what will happen under the Heckscher-Ohlin model?

• A) The labor-abundant country will export automobiles.
• B) The capital-abundant country will export shoes.
• C) The labor-abundant country will import shoes.
• D) The capital-abundant country will import shoes.

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Definitions:

Spatial Abilities

The ability to comprehend, rationalize, and recall the spatial relationships between objects or areas.

Mathematical Abilities

The capacity to perform and understand various mathematical operations, concepts, and problem-solving techniques.

Cerebral Hemispheres

The two halves of the brain, each controlling the opposite side of the body and specializing in different functions, such as language and spatial abilities.

Less Lateralized

Pertaining to functions or processes in the brain that are less dominantly localized to one hemisphere than is typically observed.