In Drucker's framework, a capital-intensive country tends to export which type of goods?

In Drucker's framework, a capital-intensive country tends to export which type of goods?

• A. Labor-intensive services
• B. Goods that require high capital input
• C. Perishables with quick turnover
• D. Low-technology textiles

Answer: (B)

In this view, the kind of goods a country exports reflects what it has in plenty. A capital-intensive country has a lot of capital relative to labor, so it tends to specialize in and export goods that require substantial capital investment to produce. These are products like heavy machinery, advanced manufacturing equipment, aircraft components, chemicals—things that rely on large-scale plants, expensive equipment, and high-tech processes. Labor-intensive services and low-technology textiles are more characteristic of economies abundant in labor, not capital. Perishables with quick turnover are driven more by logistics, supply chains, and market access than by the capital depth of a country. So the best fit for a capital-rich economy is goods that demand high capital input.

In this view, the kind of goods a country exports reflects what it has in plenty. A capital-intensive country has a lot of capital relative to labor, so it tends to specialize in and export goods that require substantial capital investment to produce. These are products like heavy machinery, advanced manufacturing equipment, aircraft components, chemicals—things that rely on large-scale plants, expensive equipment, and high-tech processes.

Labor-intensive services and low-technology textiles are more characteristic of economies abundant in labor, not capital. Perishables with quick turnover are driven more by logistics, supply chains, and market access than by the capital depth of a country. So the best fit for a capital-rich economy is goods that demand high capital input.