MCQOPTIONS
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| 1. |
Heckscher-Ohlin theory explains— |
| A. | Pattern of trade in terms of relative factor endowments of countries |
| B. | Why a country may import products which use extensively the country’s scarce factor |
| C. | The law of comparative cost |
| D. | The concept of reciprocal demand |
| Answer» B. Why a country may import products which use extensively the country’s scarce factor | |