The theory that states that a country has a comparative advantage in the production of a product if that country is relatively well endowed with inputs used intensively in the production of that product is the?
Correct answer: B. Heckscher Ohlin theorem
- A. Ricardo Malthus theorem
- B. Heckscher Ohlin theorem
- C. Lucas-Laffer theorem
- D. Friedman Samuelson theorem
Explanation
The Heckscher-Ohlin theorem links comparative advantage to relative factor endowments. A country tends to export goods that intensively use the inputs it possesses relatively abundantly.
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