Q.

According to physical criterion of the H-O theory of trade, a country is said to be relatively capital abundant if and only if

A. A country is having capital relatively cheap and labour relative costly
B. A country is endowed with a higher proportion of capital to labour than the other country
C. A country is having labour relatively cheap and capital relatively costly
D. A country is endowed with a higher proportion of labour to capital than the other country
Answer» B. A country is endowed with a higher proportion of capital to labour than the other country
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