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For the Difference in Factor Endowment to Be the Basis

Question 31

Multiple Choice

For the difference in factor endowment to be the basis of trade the Heckscher-Ohlin theorem requires that:


A) the two nations in questions have different tastes.
B) trading partners are different in terms of the level of technology.
C) Both nations only have broadly similar tastes because the level of technology is not relevant.
D) both nations have similar tastes and technology.

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