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Q. |
An implication of the Heckscher-Ohlin Theorem is that |
A. | if two countries have identical tsetse, then no trade will occur between them. |
B. | the relative price of a country's scarce factor of production will rise when the country is opened to trade. |
C. | income distribution in a country does not change when a country is opened to trade. |
D. | two countries with identical tastes can still have a basis for trade if factor endowments of the countries differ and if the factor intensities of the commodities differ. |
Answer» D. two countries with identical tastes can still have a basis for trade if factor endowments of the countries differ and if the factor intensities of the commodities differ. |
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