Solved

Honduras Exports Clothing to the United States,and the United States

Question 45

Multiple Choice

Honduras exports clothing to the United States,and the United States exports bulldozers to Honduras.Proponents of the Heckscher-Ohlin model would explain this pattern of trade by stating that:


A) Honduras has an advantage in the technology used in clothing production,while the United States has an advantage in the technology used in bulldozer production.
B) Honduras's climate is more conducive to producing clothing,while the United States' climate is more conducive to producing bulldozers.
C) Honduras has a relatively large endowment of factors of production for making clothing,while the United States has a relatively large endowment of factors of production for making bulldozers.
D) Honduras has a factor intensity in capital and the United States has a factor intensity in labor.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents