The Heckscher-Ohlin theory argues that the pattern of international trade is determined by differences in:

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory postulates that countries will trade goods that require factors of production that they have in abundance or relatively abundant compared to other countries, and import goods that require factors of production that are scarce. These differences in factors of production, also known as factor endowments, include natural resources, physical capital, human capital, and technological know-how. Therefore, option C is the correct answer.

The Heckscher-Ohlin Theory Argues That the Pattern of International Trade