According to the Heckscher-Ohlin Theory,______ constitutes the major source of comparative advantage
A) research and development
B) innovation
C) endowments of factors of production
D) acquired advantages in labor productivity

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin Theory suggests that a country's comparative advantage is determined by its endowments of factors of production, such as labor, capital, and natural resources. Therefore, C is the best choice as it highlights that the major source of comparative advantage is the endowment of factors of production. A, B, and D are not relevant to the theory.

According to the Heckscher-Ohlin Theory,______ Constitutes the Major Source of Comparative