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Why is intra-industry trade difficult for the Heckscher-Ohlin trade theory to explain? Group of answer choices Since the products are within the same industry and
Why is "intra-industry" trade difficult for the Heckscher-Ohlin trade theory to explain? Group of answer choices Since the products are within the same industry and made with the same factors, differences in factor endowment cannot explain it. Industries are expected to compete with each and not trade with each when factors are immobile. Countries with abundant labor are not expected to also import labor-intensive products. Most of it is conducted between developing countries, which the theory predicts little of
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