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Q. |
In international-trade equilibrium in the Heckscher-Ohlin model, |
A. | The capital rich country will charge less for the capital intensive good than the price paid by the capital poor country for the capital-intensive good. |
B. | The capital rich country will charge the same price for the capital intensive good as that paid for it by the capital poor country. |
C. | The capital rich country will charge more for the capital intensive good than the price paid by the capital poor country for the capital-intensive go |
Answer» B. The capital rich country will charge the same price for the capital intensive good as that paid for it by the capital poor country. |
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