A country will have relatively lower costs of production in goods where production calls for smaller quantities of the abundant factor of production and greater quantities of the scarce factor of production.

Question

Quizplus · Accepted Answer

A country will have relatively lower costs of production in goods where production calls for greater quantities of the abundant factor of production and smaller quantities of the scarce factor, according to the Heckscher-Ohlin theory of international trade.

A Country Will Have Relatively Lower Costs of Production in Goods