The trade model of the Swedish economists Heckscher and Ohlin maintains that:

Related MCQs

• The Heckscher-Ohlin model rules out the classical model’s basis for trade by assuming that________ is (are) identical between 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
• 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?
• In international-trade equilibrium in the Heckscher-Ohlin model,
• According to the Heckscher - Ohlin model, if the United States is richly endowed in human capital relative to Mexico, then as NAFTA increasingly leads to more bilateral free trade between the two countries,
• The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former
• 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.
• According to the factor endowment model of Heckscher and Ohlin, countries heavil y endowed with land will:
• The Heckscher-Ohlin model predicts all of the following except:
• According to the Heckscher-Ohlin model, the source of comparative advantage is a country’s: