Honduras exports clothing to Canada,and Canada exports bulldozers to Honduras.Proponents of the Heckscher-Ohlin model would explain this pattern of trade by stating that:
A) Honduras has an advantage in the technology used in clothing production,while Canada has an advantage in the technology used in bulldozer production.
B) Honduras's climate is more conducive to producing clothing,while Canada's climate is more conducive to producing bulldozers.
C) Honduras has a relatively large endowment of factors of production for making clothing,while Canada has a relatively large endowment of factors of production for making bulldozers.
D) Honduras has a factor intensity in capital and Canada has a factor intensity in labour.
Correct Answer:
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