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An Implication of the Heckscher-Ohlin Model Is That Trade Will

Question 4

Multiple Choice

An implication of the Heckscher-Ohlin model is that trade will tend to


A) bring factor prices into equality in different countries.
B) cause factor prices to fall in different countries.
C) be diverted from countries with higher factor prices.
D) not have any effect on factor prices in different countries.
E) cause factor prices to rise in different countries.

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