The central prediction of the Hecksher-Ohlin theorem is that
A) international goods prices equalize under foreign trade
B) comparative advantages depend on the abundance of factor inputs
C) international trade disperses technology, speeding convergence
D) all nations move beyond their production possibilities sets with free trade
E) exchange rates adjust to ensure purchasing power parity
Correct Answer:
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Q9: Applied to trade in two goods between
Q10: The largest exporter of goods and services
Q11: As a general rule,
A) large economies tend
Q12: The next questions refer to the following.
Suppose
Q13: Which of the following does not help
Q15: The price of a country's exports relative
Q16: Which of the following industries accounts for
Q17: The next questions refer to the following.
Suppose
Q18: In the Hotelling Rule,which of the following
Q19: The next questions refer to the following.
Suppose
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