Question

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

Answer 1

TRUE

Step-by-step 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.