The Case of the Missing Trade refers to
A) the fact that world exports does not equal world imports.
B) the 9th volume of the Hardy Boys' Mystery series.
C) the fact that factor trade is less than predicted by the Heckscher-Ohlin theory.
D) the fact that the Heckscher Ohlin theory never applies to China-U.S. trade practices.
E) the fact that the Heckscher Ohlin theory predicts much less volume of trade than actually exists.

Question

Quizplus · Accepted Answer

The Case of the Missing Trade refers to the fact that factor trade (the exchange of factors of production, such as labor or capital) is less than predicted by the Heckscher-Ohlin theory, which suggests that countries should specialize in and export goods that use their abundant factors of production and import goods that use their scarce factors of production.

The Case of the Missing Trade Refers to