The Central Prediction of the Hecksher-Ohlin Theorem Is That

Multiple Choice

The central prediction of the Hecksher-Ohlin theorem is that

A) international goods prices equalize under foreign trade
B) comparative advantages depend on the abundance of factor inputs
C) international trade disperses technology, speeding convergence
D) all nations move beyond their production possibilities sets with free trade
E) exchange rates adjust to ensure purchasing power parity