According to the Heckscher-Ohlin Theory,national Comparative Advantages Exist Because of

question 96

Multiple Choice

According to the Heckscher-Ohlin theory,national comparative advantages exist because of

• A)differences in national factor endowments.
• B)differences in saving and investment.
• C)differences in climate alone.
• D)economies of scale.
• E)international factor mobility.

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Definitions:

Capital Flight

Refers to the rapid movement of large sums of money or capital out of a country, typically to safer or more profitable markets.

Domestic Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling within a country.

Demographic Transition

A theory describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Per Capita Incomes

The average income earned per person in a given area or country.