Asked by Horacio Nicolas on May 18, 2024

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A nation with abundant capital resources tends to be an exporter of

A) labor-intensive products
B) capital-intensive products.
C) natural resource-based products.
D) consumer products.

Capital-Intensive Products

Products that require a high amount of capital investment in machinery and equipment relative to labor input in their production process.

Capital Resources

Assets such as machinery, tools, and buildings that are used in the production of other goods and services.

  • Identify how resource endowments influence a nation's trade patterns.
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Verified Answer

SB
Stephan BeselMay 24, 2024
Final Answer :
B
Explanation :
A nation with abundant capital resources tends to invest more in capital-intensive production processes, which leads to the production of capital-intensive products. These products require a high level of machinery, technology and equipment which are only available with the utilization of capital. Hence, such a country is more likely to become an exporter of capital-intensive goods.