The model suggesting that countries will specialize in producing the good that uses its relatively abundant factor of production MOST intensively is referred to as the _____ model.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model proposes that countries will focus on producing goods that utilize their abundant factors of production, leading to specialization and trade between countries. This theory helps explain why countries trade and how it can benefit both parties involved.

The Model Suggesting That Countries Will Specialize in Producing the Good