Question

Which of the following is NOT a proposition of the Heckscher-Ohlin model? Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. If the United States is a skilled labor abundant country, then the United States has a comparative advantage in the production of goods that use skilled labor more intensively. The effect of international trade is to tend to equalize factor prices between the trading nations. A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource.

Answer 1

Answer:

Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur. ( first choice)