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An Implication of the Heckscher-Ohlin Theorem Is That

Question 31

Multiple Choice

An implication of the Heckscher-Ohlin theorem is that


A) if two countries have identical tastes, then no trade will occur between them.
B) the relative price of a country's scarce factor of production will rise when the Country is opened to trade.
C) income distribution in a country does not change when a country is opened to trade.
D) two countries with identical tastes can still have a basis for trade if factor endowments Of the countries differ and if factor intensities of the commodities differ.

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