According to the Heckscher- Ohlin model
A)the scarce factor gains from trade and the abundant factor loses.
B)only the country with the more advanced technology gains from trade.
C)the gainers from trade could compensate the losers and still retain gains.
D)a country gains from trade if its exports have a high value added.
E)everyone gains from trade.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model suggests that trade benefits the abundant factor of production in a country, and while there may be losers, the overall gains from trade can be redistributed to compensate them, leading to a net gain.

According to the Heckscher- Ohlin Model