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According to Physical Criterion of the H-O Theory of Trade

Question 1

Multiple Choice

According to physical criterion of the H-O theory of trade, a country is said to be relatively capital abundant if and only if


A) A country is having capital relatively cheap and labour relative costly
B) A country is endowed with a higher proportion of capital to labour than the other country
C) A country is having labour relatively cheap and capital relatively costly
D) A country is endowed with a higher proportion of labour to capital than the other country

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