On examining Heckscher Ohlin Model of international trade by using physical criterion of factor abundance, when will the theory stand valid
(A) If the consumption bias and the production bias are towards the same direction in both countries.
(B) If the consumption bias and the production bias are in opposite direction in both countries.
Choose the correct option:
1
If (A) is correct.
2
If (B) is correct.
3
If both (A) and (B) are correct.
4
Neither (A) nor (B) is correct.