The Heckscher-Ohlin theorem states that a country will have comparative advantage in the good whose production in relatively intensive in the with which the country is relatively abundant ?
Correct answer: C. factor/resource
- A. tastes
- B. technology
- C. factor/resource
- D. opportunity cost
Explanation
Heckscher-Ohlin theory says a country exports goods that intensively use its relatively abundant factor or resource. A labor-abundant country, for example, tends to specialize in labor-intensive goods.
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