Asked by

Tristan Garza
on Oct 25, 2024

verifed

Verified

The model suggesting that countries will specialize in producing the good that uses its relatively abundant factor of production MOST intensively is referred to as the _____ model.

A) Heckscher-Ohlin
B) absolute advantage
C) sweatshop labor
D) pauper labor fallacy

Heckscher-Ohlin Model

An economic theory that proposes countries export what they can most efficiently and abundantly produce, based on their factor endowments of labor, capital, and resources.

Absolute Advantage

The capability of one entity to produce more of a good, product, or service with the same amount of resources than another.

Sweatshop Labor

Work done in very poor conditions for low pay, often in factories that make fast fashion, electronics, and other consumer goods.

  • Understand the function of the Heckscher-Ohlin model in forecasting trade flows according to resource allocations.
verifed

Verified Answer

AM
Andrea MurphyOct 28, 2024
Final Answer:
Get Full Answer