Which of the following is NOT a proposition of the Heckscher-Ohlin model?
A) A country has a comparative advantage in the production of that commodity which uses more intensively the country's more abundant resource.
B) The effect of international trade is to tend to equalize factor prices between the trading nations.
C) If Mexico is an unskilled labor abundant country,then Mexico has a comparative advantage in the production of goods that use unskilled labor more intensively.
D) If the United States is a skilled labor abundant country,then the United States has a comparative advantage in the production of goods that use skilled labor more intensively.
E) Countries will completely specialize in the product in which they have a comparative advantage if free trade is allowed to occur.
Correct Answer:
Verified
Q1: The Stolper-Samuelson Theorem predicts
A)the level of productivity
Q3: If the price of a good rises,then
Q4: Use the below mentioned table for the
Q5: The straight-line production possibilities curve introduced in
Q6: A production possibilities curve that is bowed
Q8: In the Heckscher-Ohlin model,what assumption is made
Q11: Use the below mentioned table for the
Q13: Suppose that Brazil is capital abundant and
Q17: Using the HO model,assume that the United
Q37: Suppose that Brazil is capital abundant and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents