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Consider the international market for labor-intensive crops like rice and sugar cane. Does the Heckscher-Olin Theorem predict that the United States would export those crops?

Consider the international market for labor-intensive crops like rice and sugar cane.

  1. Does the Heckscher-Olin Theorem predict that the United States would export those crops? Why or why not?
  2. Does the Leontief Paradox apply to the United States when it comes to these crops? Why or why not?
  3. How can New Trade Theory explain why the United States might export labor-intensive crops?

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