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Homework answers / question archive / If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, we predict that Gambinia will export A) capital-intensive goods
If Gambinia has many workers but very little land and even less productive capital, then, following the Heckscher-Ohlin model, we predict that Gambinia will export A) capital-intensive goods. B) labor-intensive goods. C) both labor- and land-intensive goods. D) both capital- and land-intensive goods. E) land-intensive goods.
The correct option is 'B'. Labour-intensive goods. because,
heckscher-ohlin model says that the country in which the capital is available in large amount and the labour or workers are very few, they mostly export capital-intensive goods or products and import labour intensive goods or products.
but in the countries in which the number of labours are much but the capital and the land are less then they export labour-intensive goods or products and import capital-intensive goods and products.
so, in the case of Gambinia they have many workers but very little land and less productive capital then according to Heckscher-ohlin model they will export labour-intensive goods.
