With
an
abundance
of
low
-
priced
(
____________________
)
labor
relative
to
the
United
States
,
it
is
no
surprise
that
China
,
India
and
____________________
developing
countries
specialize
in
the
production
of
labor
-
intensive
products
.
For
similar
reasons
,
the
United
States
will
specialize
in
the
production
of
goods
that
are
____________________
-
and
physical
-
capital
intensive
because
of
the
relative
abundance
of
a
highly
-
educated
labor
force
and
technically
sophisticated
(
____________________
)
equipment
in
the
United
States
.
This
division
of
global
production
should
yield
higher
global
output
of
both
types
of
goods
than
would
be
the
____________________
if
each
country
attempted
to
produce
both
of
these
goods
itself
.
For
example
,
the
United
States
would
produce
more
expensive
labor
-
intensive
goods
because
of
its
more
expensive
labor
and
the
developing
countries
____________________
produce
____________________
expensive
human
and
physical
capital
-
intensive
goods
because
of
their
relative
scarcity
of
these
inputs
.
This
logic
implies
that
the
United
States
is
unlikely
to
be
a
____________________
global
competitor
in
the
production
green
technologies
that
are
not
relatively
intensive
in
human
and
physical
capital
.
Nevertheless
,
during
the
early
stages
of
the
development
of
a
new
technology
,
the
United
States
has
a
comparative
advantage
in
the
production
of
the
products
enabled
by
this
innovation
.
However
,
once
these
technologies
become
well
-
understood
and
production
processes
are
designed
that
____________________
make
____________________
of
less
-
skilled
labor
,
production
will
migrate
to
countries
with
____________________
expensive
labor
.
