Mahatma Gandhi exhorted his followers in India to promote economic welfare by decreasing imports. This approach
A) makes no sense.
B) makes no economic sense.
C) is consistent with the the Ricardian model of comparative advantage.
D) is not consistent with the Ricardian model of comparative advantage.
E) guarantees benefits for Indian workers.
Question 2
The Shipbreakers of Alang represent a perfect example of how a developing country can apply the principles of the Heckscher-Ohlin model, since
A) shipbreaking is generally considered to be a capital-intensive operation and India, being a large country has much capital.
B) shipbreaking is a labor-intensive operation in India, and India has many workers since it is such a large country.
C) shipbreaking is a labor-intensive operation in India, and India's availability of capital per worker is less than that of its trade partners.
D) shipbreaking is a capital-intensive operation elsewhere in the world, and therefore represents a case of a factor intensity reversal.
E) India's climate lends itself to the work involved in shipbreaking.
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