Nolan asked in Social ScienceEconomics · 10 months ago

Econ Question?

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? 

1 Answer

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  • Oiy
    Lv 6
    10 months ago

    The answer is clear and obvious for decades. The US is abundant in human capital. (Leontief)

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