The HeckscherOhlin theorem explains patterns of trade
Between countries using:
A)economies of scale.
B)monopoly power in the industry.
C)abundance or scarcity of resources.
D)tariffs and quota.

Question

The Heckscher­Ohlin theorem explains patterns of trade
Between countries using:
A)economies of scale.
B)monopoly power in the industry.
C)abundance or scarcity of resources.
D)tariffs and quota.

Quizplus · Accepted Answer

The Heckscher­Ohlin theorem explains that countries will trade goods that require resources that are abundant in one country and scarce in another. This is based on the idea that countries will specialize in producing goods that use their abundant resources, and then trade those goods for other goods that use resources they are relatively scarce in.

The Heckscher­Ohlin Theorem Explains Patterns of Trade

The HeckscherOhlin Theorem Explains Patterns of Trade