One way in which the Heckscher-Ohlin model differs from the Ricardo model of comparative advantage is by assuming that ________ is (are) identical in all countries.
A) factor endowments
B) scale of production
C) factor intensities
D) technology
E) opportunity costs

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes that technology is identical across countries, differing from the Ricardo model by focusing on differences in countries' factor endowments (like labor and capital) as the basis for trade, rather than differences in technology.

One Way in Which the Heckscher-Ohlin Model Differs from the Ricardo