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bridget casco
on Dec 08, 2024

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The pharmaceutical industry depends on highly trained workers, who are abundantly available in India. The automobile industry depends on the availability of a large stock of physical capital with which the United States is well endowed. According to Heckscher-Ohlin theorem

A) India should export automobiles.
B) the United States should export pharmaceuticals.
C) the United States should import automobiles.
D) India should import automobiles.

Heckscher-Ohlin Theorem

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

Pharmaceuticals

Products and substances manufactured and sold for the diagnosis, treatment, or prevention of diseases and health conditions.

Automobiles

Motor vehicles designed for transporting passengers, commonly on roads, ranging from cars to buses.

  • Acquire insights into the role of factor endowments in determining trade flows according to the principles of the Heckscher-Ohlin theorem.
  • Understand the significance of both human and material assets in dictating a country's competitive edge in particular industries.
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Hailey WellsDec 13, 2024
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