The Heckscher-Ohlin model assumes that there are two countries, each of which produces two goods (say manufactures and agriculture) using labor and capital. Which of the following is an additional assumption of the Heckscher-Ohlin model?
A) The ratio of the quantity of labor to the quantity of capital is different for each nation, resulting in different "endowments" of capital and labor.
B) One nation has larger quantities of both capital and labor than the other country.
C) Capital is a specific resource in producing manufactured goods, and labor is a specific resource in producing agricultural goods in each country.
D) Labor and capital can move between countries.
Correct Answer:
Verified
Q2: The Heckscher-Ohlin model simplifies the analysis by
Q3: Which of the following statements is correct?
A)
Q4: The Heckscher-Ohlin theorem explains patterns of trade
Q5: A situation in which one nation produces
Q6: According to the application in the text,
Q7: Which of the following statements is true?
A)
Q8: United States' agricultural production is _ in
Q9: The implication of resources being mobile domestically
Q10: The Heckscher-Ohlin Model assumes that:
A) consumer tastes
Q11: The Heckscher-Ohlin model assumes that the factors
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