The HO theorem states that a country will have comparative advantage in the good whose production is relatively intensive in the ________ with which the country is relatively abundant.
A)tastes
B)technology
C)factor
D)opportunity costs

Question

Quizplus · Accepted Answer

The HO (Heckscher-Ohlin) theorem posits that a country will have a comparative advantage in producing goods that intensively use the factors of production (such as labor, land, or capital) in which the country is relatively well-endowed.

The HO Theorem States That a Country Will Have Comparative