Once the Heckscher-Ohlin (HO) model's assumptions of perfect competition and increasing costs are dropped, different logical conclusions about international trade are possible, such as:
A) increasing returns to scale explain why most trade occurs between similar high-income economies rather than the most different economies.
B) international trade is mostly conducted by monopolistic producers that charge prices that exceed their production costs.
C) the gains and losses from opening an economy to foreign trade also differs from the patterns predicted by the neoclassical HO model and its factor price equalization theorem and Stolper-Samuelson theorem.
D) All of the above.
E) None of the above.
Correct Answer:
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Q2: The orthodox neoclassical Heckscher-Ohlin model is unrealistic
Q3: Adam Smith (1776) famously criticized the "mercantilists"
Q4: Brazil was colonized in 1500 by:
A) Spain
B)
Q5: Brazil's first major export was:
A) coffee
B) sugar
C)
Q6: During its colonial era, Brazil's economy:
A) developed
Q7: After its independence, Brazil:
A) continued to depend
Q8: Until the twentieth century, Brazil's economy was
Q9: During its colonial era and its early
Q10: Why did colonial Brazil begin importing slaves
Q11: Brazil's economic policies after the 1930 crash
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