After accounting for differing _________ as well as _________, evidence for many countries is broadly consistent with the Heckscher-Ohlin model.
A) factor productivities; factor endowments
B) preferences; factor productivities
C) preferences; factor endowments
D) factor endowments; generalities

Question

Quizplus · Accepted Answer

The Heckscher-Ohlin model states that countries will export goods that use their abundant factors of production relatively intensively and import goods that use their scarce factors of production relatively intensively. Accounting for differing factor productivities and factor endowments is crucial for testing the validity of the model. The other options (B, C, D) do not accurately describe the factors that need to be accounted for when testing the Heckscher-Ohlin model.

After Accounting for Differing _________ as Well as _________, Evidence

After Accounting for Differing _ as Well as _, Evidence