Mexico is relatively labor-abundant when compared with the United States. Therefore, Mexico has a comparative advantage in _____ compared with the United States.

Respuesta :

Answer:

Goods which are labor-intensive in production

Explanation:

Labor intensive goods are those kinds of goods, which needed the significant amount of the labor for producing the labor intensive industries.

And labor intensive industries are determined through the amount of the capital required for producing those goods, which usually refer to the industries such as agriculture, food service and mining.

So, in this case, Mexico is labor abundant, therefore, Mexico has the competitive benefit in the labor intensive goods in production when compared with the US.