MAXIMUM LABOR ABSORPTION
In LDCs, labor – often underemployed and having low alternative costs – is usu- ally considered the abundant factor, and capital, the scarce factor. Thus, we might expect LDCs to specialize in labor-intensive goods (that is, those with high labor– capital ratios). Specifically, this means that LDCs should replace the capital-intensive industrial techniques common in DCs with more labor-intensive approaches.