The Heckscher-Ohlin theorem looks to ________ to explain trade flows.
A) relative factor endowments
B) the existence of trade barriers
C) acquired comparative advantage
D) the differences in preferences among consumers

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theorem explains trade flows based on differences in countries' relative factor endowments, suggesting that countries will export goods that make intensive use of their abundant factors of production.

The Heckscher-Ohlin Theorem Looks to ________ to Explain Trade Flows