Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

D Question 4 2.5 pts Which description does not correctly characterize the Hecksher-Ohlin (OH) trade model? O A country's factors of production (a country's endowments

image text in transcribed
D Question 4 2.5 pts Which description does not correctly characterize the Hecksher-Ohlin (OH) trade model? O A country's factors of production (a country's endowments of inputs) are used to make each good give rise to productivity differences between countries. hs O When a country enjoys a relative abundance of a factor, the factor's relative cost is less than in countries where the factor is relatively scarce. A country's comparative advantage lies in the production of goods that use relatively abundant factors. A country's endowment of a specific factor plays a more critical role in determining comparative advantage because when trade opens, incomes rise for the owners of the abundant specific factor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Green Jobs For Sustainable Development

Authors: Ana Maria Boromisa, Sanja Tišma

1st Edition

131775185X, 9781317751854

More Books

Students also viewed these Economics questions