- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 6. International Trade
- Subject 1. International Trade
CFA Practice Question
The H-O model assumes that ______
II. technology varies between industries.
III. capital is more important than labor in production.
I. technology is the same across countries.
II. technology varies between industries.
III. capital is more important than labor in production.
Correct Answer: I and II
In this model both capital and labor are variable factors of production.
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