MCQOPTIONS
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| 1. |
One of the predictions of the Heckscher-Ohlin model is that ? |
| A. | countries with different factor endowments but similar technologies and preferences will have a strong basis for trade with each other |
| B. | countries with tend to specialize but not completely in their comparative advantage good |
| C. | reciprocal demand leads to an equilibrium terms of trade by inducing change in both demand and supply |
| D. | All of the above |
| Answer» E. | |