The Theory of Overlapping Demand

The theory of overlapping demand:

A) explains how international trade in manufactured goods will be linked to gross national income.
B) states that a nation will trade goods that can be produced with the production factor that is most abundant.
C) explains why companies will add excess capacity to their production systems.
D) explains why exchange rate is the price of one currency stated in terms of another..
E) deduces that international trade in manufactured goods will be greater between nations with similar levels of per capita income..