Based on post World War II trade patterns in the US, a capital abundant country, Leontief finds a Paradox. With x and m respectively showing exports and imports and K and L meaning capital and labour, Leontief Paradox is given by
1
\(\left(K_x / L_x\right)_{U S}=\left(K_m / L_m\right)_{U S}\)
2
\(\left(K_x / K_m\right)_{U S}=0\)
3
\(\left(K_x / L_x\right)_{U S}>\left(K_m / L_m\right)_{U S}\)
4
\(\left(K_x / L_x\right)_{U S}<\left(K_m / L_m\right)_{U S}\)