It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

O True

O False

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26 May, 03:41

It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

O True

O False

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Answers (1)

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Alyssa Newman · Answer 1

TRUE

Explanation:

The statement is of H. O theory of Advantage in International Trade.

It states that : Countries would have advantage in producing good which uses its abundant factor intensively.

If country A has relatively more labour than capital, comparatively than country B : It will have cheaper labour & will produce relatively more labour intensive good (good using more labour), at a lower cost and better competitive advantage than Country B.

It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.O TrueO False

It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

O True

O False