Suppose That the United States and China Each Produce Steel

Multiple Choice

Suppose that the United States and China each produce steel and cloth. In the Heckscher-Ohlin model, if the United States enjoys a comparative advantage in steel production, then:

A) China must have an absolute advantage in cloth production.
B) the United States will also have a comparative advantage in cloth production.
C) China must have a comparative advantage in cloth production.
D) the United States must have an absolute advantage in steel production.