The United States imports more manufactured goods than it exports. These are goods that require more capital than labor. It also exports more services than it imports. Services require more labor than capital. If comparative advantage depends on relative factor abundance, what does the United States have in relative abundance? Does this make sense for an economy as advanced as the United States?
- OiyLv 610 months ago
The answer is clear and obvious for decades. The US is abundant in human capital. (Leontief)