Capital markets of poor developing countries that liberalized ...

[jparksx]

Capital markets of poor developing countries that liberalized their financial systems to allow private asset trade with foreigners are called
 
  A) direct foreign markets.
  B) foreign exchange markets.
  C) stock & bond markets.
  D) emerging markets.
  E) fledgling financial markets.

Question 2

Factor-intensity reversals describe a situation in which the production of a product may be land-intensive in one country, and relatively labor intensive in another (at given relative wage levels). For example, cotton may be land intensive in the U.
 
  S., and labor intensive in Egypt where land is relatively scarce and expensive. Suppose factor-intensity reversals were common. How would that affect the conclusion that a country in which land is relatively scarce will not be the country with a comparative advantage in the land-intensive product?

[olderstudent]

Answer to Question 1

D

Answer to Question 2

The answer here is straightforward (though it has various interesting implications). In this case we cannot define or identify a product in terms of its relative factor intensity (at all or any relative wage level). Therefore, the Heckscher-Ohlin Theorem is ipso-facto inapplicable.