In Heckscher-Ohlin theory, differences in _____ across countries are considered to be the basis for comparative advantage.

Question

Quizplus · Accepted Answer

Heckscher-Ohlin theory states that countries possess different factor endowments such as labor, capital, and natural resources. Differences in these factor endowments account for differences in comparative advantage across countries. Therefore, Option B is the best answer. Options A, C, and D are not relevant to Heckscher-Ohlin theory.

In Heckscher-Ohlin Theory, Differences in _____ Across Countries Are Considered