The HeckscherOhlin model assumes that technology in
Each industry:
A)Is the same in each nation-each firm has access to the most profitable technology.
B)has increasing returns so that one nation will be able to gain a comparative advantage by developing new
Technology.
C)is very different across the world-some nations have access to technology, whereas others do not.
D)is hard to access because R&D is very expensive especially for lowincome nations.

Question

The Heckscher­Ohlin model assumes that technology in
Each industry:
A)Is the same in each nation-each firm has access to the most profitable technology.
B)has increasing returns so that one nation will be able to gain a comparative advantage by developing new
Technology.
C)is very different across the world-some nations have access to technology, whereas others do not.
D)is hard to access because R&D is very expensive especially for low­income nations.

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes that each firm within an industry has access to the same technology, meaning that technology is the same in each nation. This allows for the model to analyze how the distribution of inputs affects comparative advantage and trade patterns.

The Heckscher­Ohlin Model Assumes That Technology in

The HeckscherOhlin Model Assumes That Technology in