Assume That Only Two Countries, a and B, Exist

question 54

Multiple Choice

Assume that only two countries, A and B, exist.

-Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory

• A) country B will export good S.
• B) country A will export good S.
• C) both countries will export good S.
• D) trade will not occur between these two countries.
• E) both countries will import good S.

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Definitions:

Reactivity

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