Assume the production of chocolate is capital-intensive and the production of fruit is labor-intensive. Albania is labor- abundant, while Germany is capital-abundant. According to the Heckscher-Ohlin theory of trade: Albania has the comparative advantage in chocolate Germany has the comparative advantage in chocolate Albania will import fruit Germany will import chocolate

Assume the production of chocolate is capital-intensive and the production of fruit is labor-intensive. Albania is labor- abundant, while Germany is capital-abundant. According to the Heckscher-Ohlin theory of trade: Albania has the comparative advantage in chocolate Germany has the comparative advantage in chocolate Albania will import fruit Germany will import chocolate

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter28: International Trade

Section: Chapter Questions

Problem 2P

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