6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According...

Question

6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.
a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant?
Briefly explain.
Answer:
As per Heckscher-Ohlin theorem, a capital abundant country will import labor-intensive good
and a labor abundant-country will import capital-intensive good.
Since here Russia is...

David · Accepted Answer

6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good. 
a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant? 
Briefly explain. 
Answer: 
As per Heckscher-Ohlin theorem, a capital abundant country will import labor-intensive good 
and a labor abundant-country will import capital-intensive good.

6. Suppose when Russia opens to trade, it imports automobiles, a capital-intensive good.a. According to the Heckscher-Ohlin theorem is Russia capital-abundant or labor-abundant? Briefly explain.b....

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