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Q. Factor-intensity reversals define a situation in which the production of a product can be land-intensive in one country, and relatively labor intensive in another ( at given relative wage levels). For example, cotton can be land intensive in the U.S., and labor intensive in Egypt where land is relatively expensive and scarce. Consider factor-intensity reversals were common. How could that affect the conclusion that a country in which land is relatively scarce will not be the country with a comparative advantage in the land-intensive product?
Answer: The answer here is simple though it has various interesting implications. In this case we can't identify or define a product in terms of its relative factor intensity at all or any relative wage level. so the Hecksher-Ohlin Theorem is ipso-facto inapplicable.
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