(Choose 1 answer)
Assume that only two countries. A and B, exist.
Refer to the table above. If good S is capital intensive, then following the Heckscher-Ohlin Theory
A. both countries will import good S.
B. both countries will export good S.
C. country A will export good S.
D. country B will export good S.
E. trade will not occur between these two countries.
45
15
Countries
Factor Endowments
Labor Force
Capital Stock
20
10
38
