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Countries That Trade Based on the Heckscher-Ohlin Model Will Find

Question 127

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Countries that trade based on the Heckscher-Ohlin model will find that:


A) their import goods tend to utilize their relatively scarce factors of production most intensively.
B) the goods they export tend to use their relatively scarce factors of production most intensively.
C) countries with a relative abundance of capital will export goods that use labour intensively.
D) the concept of absolute advantage determines which goods they should export and import.

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