The Heckscher-Ohlin (H-O) model asserts that a nation will export goods that intensively use its:

AAbundant factors of production

BScarce factors of production

CImported raw materials only

DHigh-cost domestic technology

Explanation

The H-O model states capital-abundant countries export capital-intensive goods, while labor-abundant countries export labor-intensive goods.

Submitted by: mcqstutor Team More Economics MCQs →