Labor abundant country exports the labor intensive good

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Based on heckscher online theorem. As a labor abundant country exports the labor intensive good X and imports the capital intensive good y from a capital abundant country.

A. Wage difference between the two countries narrow

B. Difference in returns to capital between the two countries narrow

C. Price difference in good X in the two countries narrow

D. Price difference in good y on the two countries narrow

E. All of above

Reference no: EM13861543

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