Economics · International Trade
On examining the Heckscher-Ohlin Model of international trade using the physical criterion of factor abundance, the theory stands valid under which of the following conditions? (A) If the consumption bias and the production bias are toward the same direction in both countries. (B) If the consumption bias and the production bias are in opposite directions in both countries. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Neither (A) nor (B) is correct.
- 2If both (A) and (B) are correct.
- 3If (B) is correct.✓
- 4If (A) is correct.
Correct answer
If (B) is correct.
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