The pharmaceutical industry depends on highly trained workers, who are abundantly available in India. The automobile industry depends on the availability of a large stock of physical capital with which the United States is well endowed. According to Heckscher-Ohlin theorem
A. the United States should import automobiles.
B. the United States should export pharmaceuticals.
C. India should import automobiles.
D. India should export automobiles.
Answer: C
Economics
You might also like to view...
Which of the following (if any) is not a factor affecting the profit performance of firms:
a. differential risk b. innovation c. managerial skills d. existence of monopoly power e. all of the above are factors
Economics
A firm can better align its salespersons goals to its own if
a. It bases performance evaluation on revenues b. It pays its salespeople a commission based on profits c. It pays its salespeople a commission based on sales d. It pays its salespeople a salary
Economics