Empirical support for the Heckscher-Ohlin model was weakest when the study applied
A) all of the assumptions of the model.
B) all of the assumptions of the model except that regarding technology.
C) all of the assumptions of the model except those regarding technology, goods and shipping costs.
D) all of the assumptions of the model except those regarding technology, shipping costs and gravity.
E) all of the assumptions of the model except those regarding shipping costs.

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model's empirical support was weakest when the study applied all of the assumptions except those regarding technology, goods, and shipping costs. This is because these factors are crucial for accurately predicting trade patterns, and ignoring them can significantly distort the model's predictions.

Empirical Support for the Heckscher-Ohlin Model Was Weakest When the Study