Which of the following trade theories predicts that countries with similar preferences and technologies,but dissimilar factor endowments,will have a pronounced basis for trade with each other
A) Linder theory
B) Stolper-Samuelson theory
C) Raymond Vernon theory
D) Heckscher-Ohlin theory

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory predicts that countries will export goods that use their abundant and cheap factors of production and import goods that use the countries' scarce factors, thus explaining trade between countries with different factor endowments.

Which of the Following Trade Theories Predicts That Countries with Similar