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 Leontieff 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

Empirical observations on actual North-South trade patterns tend to support the validity of the Heckscher-Ohlin model, which states that countries export goods that use their abundant resources and import goods that use their scarce resources. This has been found to hold true for many North-South trade relationships, where the North tends to export capital-intensive goods and the South tends to export labor-intensive goods. The other options (B, C, D, and E) are not supported by empirical evidence to the same degree as the Heckscher-Ohlin model.

Empirical Observations on Actual North-South Trade Patterns Tend to