Question

Meitneria and Seaboria specialize in the production of heavy machinery and textiles respectively. While Meitneria doesn't produce textiles, Seaboria is not as technologically advanced as Meitneria. In this situation, according to the Heckscher-Ohlin theory
a. Meitneria will import textiles from Seaboria and export heavy machinery to it.
b. Meitneria will invest more than Seaboria in the production of textiles to exploit its comparative advantage.
c. Meitneria and Seaboria will raise their trade barriers to protect their economies.
d. Seaboria will recruit experts from Meitneria to specialize in the production of heavy machinery.
e. Meitneria will recruit workers from Seaboria to improve its standing in the textile industry.

Answer 1

Answer:

a. Meitneria will import textiles from Seaboria and export heavy machinery to it.

Explanation:

The Heckscher-Ohlin theory states that a country has to export what it can produce efficiently according to the factors of production that the country has and import the products that the country is not able to manufacture efficiently. According to this, the answer is that in this situation, according to the Heckscher-Ohlin theory Meitneria will import textiles from Seaboria and export heavy machinery to it as Meitneria doesn't produce textiles which forces the country to import them and they specialize on heavy machinery which allows them to export it to Seaboria as this country doesn't have the technology to manufacture it.