Q.

The price criterion if the H-O theory of trade lays down that

A. A country having labour relatively cheap and capital relatively costly is capitalabundant
B. A country having capital relatively cheap and labour relatively costly is labourabundant
C. A country having both capital and labour cheap is capital-abundant
D. A country having capital relatively cheap and labour relatively costly is capital abundant
Answer» D. A country having capital relatively cheap and labour relatively costly is capital abundant

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International Trade

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