Spain and Italy only trade with each other. Each produces olive and cheese. The production of olive is relatively labor-intensive, and the production of cheese
Spain and Italy only trade with each other. Each produces olive and cheese. The production of olive is relatively labor-intensive, and the production of cheese is relatively capital-intensive.
Spain has 23 million labor and €8.5bn capital while Italy has €160bn capital and 24 million labor.
According to the Heckscher–Ohlin model, what product(s) will Spain export?
| a. | neither olive nor cheese | |
| b. | cheese | |
| c. | both olive and cheese | |
| d. | olive |
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Authors: William Messier, Steven Glover, Douglas Prawitt
9th edition
1308361491, 77862333, 978-1259248290, 9780077862336, 1259162346, 978-1259162343
