McqMate
| Q. |
Which among the following is an assumption of H-O Theorem |
| A. | each commodity that a nation produce differs in factor intensity. trade is free i.e. there are no trade restrictions in the form of tariffs or non-tariff barriers. |
| B. | the production function remains the same in different countries for the same commodity. for e.g. if commodity a requires more capital in one country then same is the case in other country. |
| C. | there is full employment of resources in both countries and demand is identical in both countries. |
| D. | all the above |
| Answer» A. each commodity that a nation produce differs in factor intensity. trade is free i.e. there are no trade restrictions in the form of tariffs or non-tariff barriers. | |
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