The Heckscher-Ohlin model assumes that factors of production can move freely _______, but cannot move _______.
A) domestically; internationally
B) after they are fully trained; before the training period is over
C) internationally; domestically
D) within unskilled occupations; into high-skill jobs

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes that factors of production (such as labor and capital) can move freely within a country (domestically) but face restrictions or cannot move freely between countries (internationally). This model is used to explain patterns of trade between nations based on their relative factor endowments.

The Heckscher-Ohlin Model Assumes That Factors of Production Can Move