Focusing on labor and capital,the ____________ is the systematic explanation of the source of comparative advantage.
A)factor proportions theory
B)strategic trade theory
C)theory of absolute advantage
D)product cycle theory
E)overlapping product ranges theory

Question

Quizplus · Accepted Answer

The factor proportions theory explains that a country will specialize in and export products that use its abundant factor(s) of production relatively more intensively than the other country. This theory is specifically focused on labor and capital as factors of production.

Focusing on Labor and Capital,the ____________ Is the Systematic Explanation