According to the Heckscher-Ohlin theory of trade, the most important cause of difference in relative commodity prices and trade between nations is a difference in
A)Factor endowment
B)Tastes
C)Demand conditions
D)All of the above

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin theory posits that the main cause of differences in commodity prices and trade patterns between countries is differences in factor endowments (such as labor, land, and capital), rather than differences in productivity.

According to the Heckscher-Ohlin Theory of Trade, the Most Important