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Most Economists Prefer the Heckscher-Ohlin Theory to Ricardo's Theory Because

Question 89

Multiple Choice

Most economists prefer the Heckscher-Ohlin theory to Ricardo's theory because:


A) it makes fewer simplifying assumptions.
B) it predicts real-world international trade patterns with greater accuracy.
C) it suggests that nations may benefit from trade even when they do not differ in resource endowments or technology.
D) ricardo's theory is too complicated to be applied to real-world scenarios.
E) it states that economies of scale have important implications for international trade.

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