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Sachin Golhar
on Oct 25, 2024

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Countries that trade based on the Heckscher-Ohlin model will find that:

A) their import goods tend to utilize their relatively scarce factors of production most intensively.
B) the goods they export tend to use their relatively scarce factors of production most intensively.
C) countries with a relative abundance of capital will export goods that use labor intensively.
D) the concept of absolute advantage determines which goods they should export and import.

Heckscher-Ohlin Model

A model in international trade theory that explains patterns of trade between countries based on their differences in factor endowments.

Import Goods

These are products brought into one country from another for sale.

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

  • Comprehend the role of the Heckscher-Ohlin model in predicting trade patterns based on factor endowments.
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Shahzain ZahidOct 29, 2024
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