Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.
A) theory of comparative advantage
B) Ricardo theory
C) new trade theory
D) Heckscher-Ohlin theory

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce.

Identify the Theory That Predicts That Countries Will Export Those