Which one of the following is NOT an assumption in the Heckscher-Ohlin analysis?
A) constant returns to scale
B) imperfect competition
C) identical production functions across countries
D) identical tastes across countries

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes perfect competition, not imperfect competition. Other assumptions like constant returns to scale, identical production functions, and tastes across countries are part of the model's framework.

Which One of the Following Is NOT an Assumption in the Heckscher-Ohlin