Which of the following predicts that countries will export those goods

QUESTION

Which of the following predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce?

A. Mercantilism

B. The theory of absolute advantage

C. The Heckscher-Ohlin theory

D. The theory of comparative advantage

E. Samuelson’s critique

ANSWER

C