China has 20 percent of the world's population and 10 percent of the world's farmable land. Which of the following will be predicted by the Heckscher-Ohlin theory if China begins to trade with other countries?
A. China will export capital-intensive goods like automobiles and import labor-intensive goods like clothing.
B. China will export land-intensive goods like wheat and import labor-intensive goods like clothing.
C. China will shift resources into the production of agricultural goods and away from manufactured goods.
D. China will shift resources from the production of agricultural goods to the production of labor-intensive goods.
Answer: D
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