The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-The Heckscher-Olin model uses differences in factor abundance to determine whether any nation has a comparative advantage in any good.

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-The Heckscher-Olin model uses differences in factor abundance to determine whether any nation has a comparative advantage in any good.

Quizplus · Accepted Answer

The statement is true. The Heckscher-Olin model is based on the idea that countries will export goods that use their abundant factors of production and import goods that use their scarce factors of production. This is determined by differences in factor abundance between countries. Therefore, the model can be used to identify which goods a country may have a comparative advantage in producing.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity