If the world terms of trade equal those of country H, then
A) country H but not country F will gain from trade.
B) country H and country F will both gain from trade.
C) neither country H nor F will gain from trade.
D) only the country whose government subsidizes its exports will gain.
E) country F but not country H will gain from trade.
Question 2
The Heckscher-Ohlin model is an alternative to the classical theory of international trade that focuses on the factors of production that countries possess.
Indicate whether the statement is true or false