In the theory of international trade, the Heckscher-Ohlin theorem states that a country will export goods that:
A. Require the most labour regardless of endowment
B. Have the highest absolute advantage
C. Use its scarce factors intensively
D. Use its abundant factors intensively
Answer: Option D
Solution (By JKSSB Mock Tests)
According to the Heckscher-Ohlin theorem, a country exports goods that intensively use its relatively abundant factors of production and imports goods that intensively use its scarce factors.
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