Countries That Trade Based on the Heckscher-Ohlin Model Will Find

question 127

Multiple Choice

Countries that trade based on the Heckscher-Ohlin model will find that:

• A) their import goods tend to utilize their relatively scarce factors of production most intensively.
• B) the goods they export tend to use their relatively scarce factors of production most intensively.
• C) countries with a relative abundance of capital will export goods that use labour intensively.
• D) the concept of absolute advantage determines which goods they should export and import.

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