Empirical observations on actual North- South trade patterns tend to
A)support the validity of the Leontief Paradox.
B)support the validity of the neo- imperialism exploitation theory.
C)support the validity of the Rybczynski Theorem.
D)support the validity of the Heckscher- Ohlin model.
E)support the validity of the wage equalization theorem.

Question

Quizplus · Accepted Answer

Empirical observations on North-South trade patterns often support the Heckscher-Ohlin model, which suggests that countries export goods that use their abundant factors intensively. The North typically exports capital-intensive goods, while the South exports labor-intensive goods, aligning with the model's predictions.

Empirical Observations on Actual North- South Trade Patterns Tend to