In the 2-factor, 2 good Heckscher-Ohlin model, an influx of workers from across the border would

Related MCQs

• In the 2-factor, 2 good Heckscher-Ohlin model, the two countries differ in
• The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former
• The Heckscher-Ohlin model rules out the classical model’s basis for trade by assuming that________ is (are) identical between countries.
• One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that __________ is (are) identical in all countries.
• As opposed to the Ricardian model of comparative advantage, the assumption of diminishing returns in the Heckscher-Ohlin model means that the probability is greater that with trade
• By adjusting the model of comparative advantage to include transportation costs along with production costs, we would expect
• _______________states that international trade will bring about equalization in the returns to homogeneous factors across countries, even without their physical movement.
• The ability to produce more of a good or service than competitors, using the same amount of resources is
• Countries H and F operate in an H-O world. Each country produces two goods, A and B. Good A is relatively capital intensive and country F is relatively labor abundant. Suppose however, that the production technology is not the same in the two countries. That is, H has a superior technology of production compared to F.
• __________ are profits that accrue to whomever has the right to import the good that is restricted by the quota.