The factor content of U.S. exports and imports during 1962 on the table below illustrates that...

 

Transcribed Image Text:

The factor content of U.S. exports and imports during 1962 on the table below illustrates that there exists the trade paradox called the "Leontief paradox" that has totally shifted the trade pattern for the Unites States during the 1962 Factor content of US Exports and Imports for 1962 Imports 2132 1190 40S 90$ Number of Capital units Number of labor (workers) Return to capital per hour Return to Labor per hour Exports 1876 1310 100$ 60S A) Calculate the capital and labor intensity and abundance ratios for imports and exports of the US during 1962. B) Evaluate why those results might not be consistent with reality through reading and providing a summary about the "Leontief Paradox" in international trade. C) Prove through evidence from your readings and literature why Leontief Paradox was proven to be counter-intuitive to the Heckscher Ohlin factor endowment model and the reasons behind those distorted results. The factor content of U.S. exports and imports during 1962 on the table below illustrates that there exists the trade paradox called the "Leontief paradox" that has totally shifted the trade pattern for the Unites States during the 1962 Factor content of US Exports and Imports for 1962 Imports 2132 1190 40S 90$ Number of Capital units Number of labor (workers) Return to capital per hour Return to Labor per hour Exports 1876 1310 100$ 60S A) Calculate the capital and labor intensity and abundance ratios for imports and exports of the US during 1962. B) Evaluate why those results might not be consistent with reality through reading and providing a summary about the "Leontief Paradox" in international trade. C) Prove through evidence from your readings and literature why Leontief Paradox was proven to be counter-intuitive to the Heckscher Ohlin factor endowment model and the reasons behind those distorted results.