Which is not an assumption of the H-O model
A)the same technology in both nations
B)constant returns to scale
C)complete specialization
D)equal tastes in both nations

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin (H-O) model does not assume complete specialization; rather, it suggests that countries will specialize in producing and exporting goods that utilize their abundant factors of production more intensively, but not to the point of complete specialization.

Which Is Not an Assumption of the H-O Model