U.S. exports are less capital-intensive than U.S. imports, despite the

QUESTION

U.S. exports are less capital-intensive than U.S. imports, despite the relative abundance of capital in the country. What is this phenomenon that runs contrary to the prediction of the Heckscher-Ohlin theory called?

A. A zero-sum game

B. The Leontief paradox

C. A positive-sum game

D. Samuelson’s critique

E. A first-mover advantage

ANSWER

B