Homework answers / question archive /  Assume that only two countries, A and B, exist

 Assume that only two countries, A and B, exist

Economics

Share With

 Assume that only two countries, A and B, exist. Factor Endowments Labor Force Capital Stock Countries A B 45 20 15 10 Refer to the table above. If good X is labour intensive, then following the Heckscher-Ohlin Theory A) country B will export good X. B) country A will export good X. C) both countries will export good X. D) trade will not occur between these two countries. E) both countries will import good X.