Which of the following is true of the Heckscher-Ohlin theory? Multiple Choice
a. It argues that it is in a country’s best interests to maintain a trade surplus.
b. It is a good predictor of real-world international trade patterns. Viewed from an Asian or European perspective, its main argument seems ethnocentric and increasingly dated.
c. It argues that the pattern of international trade is determined by differences in factor endowments.
d. It makes more simplifying assumptions than the theory of comparative advantage.

Question

02-09-2019
Business

contestada

Which of the following is true of the Heckscher-Ohlin theory? Multiple Choice
a. It argues that it is in a country’s best interests to maintain a trade surplus.
b. It is a good predictor of real-world international trade patterns. Viewed from an Asian or European perspective, its main argument seems ethnocentric and increasingly dated.
c. It argues that the pattern of international trade is determined by differences in factor endowments.
d. It makes more simplifying assumptions than the theory of comparative advantage.

Respuesta :

Otras preguntas

jane pulled weeds in the garden 7 times. She was paid $5 each time she pulled weeds for less than 1 hr and $6 each time she pulled weeds for more than 1 hr. if

Which sentence uses correct capitalization? A. In Winter, the sun sometimes sets as early as 4:30 p.m.! B. Fred wants to go to Ocean city or Virginia beach.

The writings of John Locke primarily led the Founding Fathers to believe that A they were justified in seeking independence from England B the government they c

What is greater 500 seconds or 8 minutes?

What limits the impact of public opinion on public policy? (A) the interests of the minority (B) the interests of the majority (C) the interests of the pollster

a mixture of pepper and water is a suspension because

what is a eogeo shield

Which occupation is the author referring to through this analogy? "He lives on the sea, as prairie wingspans in the prairie; he hides among the waves, he climbs

1, the difference between 42 and 19 2,100 decreased by 77 3 ,30 more than 20 plz answer all of above

Dryomys Dryomys · Answer 1 · 2019-09-05T12:57:22+02:00

Answer: Option (C) is correct.

Explanation:

The Heckscher-Ohlin theory is based on the cause of comparative advantage and explains that it is the difference in the factor endowments among the countries that is the main cause of international trade.

Heckscher-Ohlin theory says that a country exports the commodity whose production requires the intensive use of nation's relatively abundant and cheap factor and a country imports the commodity whose production requires intensive use of nation's relatively scarce and expensive factor.