The H O theory postulates that as a result of trade the differences in factor prices between nations

Related MCQs

• If a nations terms of trade is ½ its trade partners terms of trade is
• If relatively capital-abundant country A opens trade with relatively labor- abundant country B an the trade takes place in accordance with the Heckscher-Ohlin Theorem. What would be the consequence for factor prices (w/r) in the two countries?
• That identical godos should cost the same in all nations, assuming tis costless to ship godos between nations and there are no barriers to trade, is a reflection of the:
• ____________states that at constant commodity prices, an increase in the quantity of one factor increases the production of the commodity intensive in this factor and reduces the output of the other commodity which is intensive in the constant factor.
• “Free trade between two countries in H O model will equalize relative factor prices provided there is incomplete specialization.” This is
• If a commodity is classified as "labor-intensive" at one set of relative factor prices but "capital-intensive" at another set of relative prices, this situation is known as
• Which among the following are differences between Balance of Trade and Balance of Payment?
• The trade theory that states that nations should accumulate financial wealth, usually in the form of gold, by encouraging exports and discouraging imports is called
• Adam Smith identified the basic reason for trade between two nations as
• international trade refers to trade between