The Heckscher-Ohlin model assumes that the factors of production are mobile ______, but immobile _____.
A) in the short run; in the long run
B) in the long run; in the short run
C) domestically; internationally
D) internationally; domestically

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model assumes that the factors of production are mobile in the long run, but immobile in the short run. This means that over time, factors of production such as labor and capital can move between industries and countries to take advantage of differences in factor endowments, but in the short run, these factors cannot easily be relocated.

The Heckscher-Ohlin Model Assumes That the Factors of Production Are