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According to the Heckscher Ohlin model, if the stock of relatively abundant factor of production in the large country increases, then, other things equal, the

According to the Heckscher Ohlin model, if the stock of relatively abundant factor of production in the large country increases, then, other things equal, the output of the good using that factor of production intesively will ________________ and the country will tend to experience________________________ terms of trade.

a) decrease, improving

b) increase, improving

c) decrease, deteriorating

d) increase, deteriorating

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Correct option d As per HecksherOhlin model a country will export that good which uses its a... blur-text-image

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