The Heckscher-Ohlin theory predicted that the capital-rich US economy would have an advantage in exporting capital-intensive goods. But Leontief's calculations showed which of the following?

The Heckscher-Ohlin theory predicted that the capital-rich US economy would have an advantage in exporting capital-intensive goods. But Leontief's calculations showed which of the following?



A. US imports were more capital-intensive than US exports, meaning that the capital-rich United States should import labor-intensive goods such as bulk chemicals.
B. US imports were more capital-intensive than US exports, meaning that the capital-rich United States should import capital-intensive goods such as clothing.
C. US imports were more labor-intensive than US exports, meaning that the capital-rich United States was actually exporting goods that it theoretically should have been making itself.
D. US imports were more capital-intensive than US exports, meaning that the capital-rich United States was actually importing goods that it theoretically could have made better itself.
E. US imports were more labor-intensive than US exports, meaning that the capital-rich United States was actually exporting goods that it theoretically should have been importing.





Answer: D


Learn More :