Moderate

According to the Heckscher-Ohlin model the source of comparative advantage is a country's ?

Correct answer: C. factor endowments

  • A. technology
  • B. advertising
  • C. factor endowments
  • D. both (a) and (c)

Explanation

The Heckscher-Ohlin model links comparative advantage to relative factor abundance, such as land, labour, or capital. Technology can influence trade in other models, but it is not the source emphasized here.

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