Empirical observations on actual North-South trade patterns tend to
A) support the validity of the Heckscher-Ohlin model.
B) support the validity of the Leontief Paradox.
C) support the validity of the Rybczynski Theorem.
D) support the validity of the wage equalization theorem.
E) support the validity of the neo-imperialism exploitation theory.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model predicts that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production. Empirical observations on actual North-South trade patterns tend to support this prediction.

Empirical Observations on Actual North-South Trade Patterns Tend to