How does the offshoring model differ from the type of trade analyzed with the Ricardian and Heckscher-Ohlin trade models?
A) There is no difference since the offshoring, Ricardian, and Heckscher-Ohlin trade models can be used to analyze offshoring.
B) The Ricardian and Heckscher-Ohlin trade models can only analyze trade in finished products.
C) The Ricardian model can be used to analyze offshoring while the Heckscher-Ohlin model only analyzes trade in finished products.
D) The Heckscher-Ohlin model can be used to analyze offshoring while the Ricardian model only analyzes trade in finished products

Question

Quizplus · Accepted Answer

The Ricardian and Heckscher-Ohlin trade models primarily focus on trade in finished products, analyzing comparative advantage and factor endowments, respectively. Offshoring, however, involves relocating certain business processes or production stages to another country, which is not directly addressed by these models.

How Does the Offshoring Model Differ from the Type of Trade