Relaxing the Assumptions on Which the Heckscher-Ohlin Theory Rests

question 1

Multiple Choice

Relaxing the assumptions on which the Heckscher-Ohlin theory rests:

• A)leads to rejection of the theory
• B)leaves the theory unaffected
• C)requires complementary trade theories
• D)any of the above.

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Definitions:

Net Loss

A financial situation where total expenses exceed total revenues over a specific period, reflecting a negative profit.

World Trade Organization

An international organization established to supervise and liberalize world trade.

Trade Agreements

Formal accords between countries to regulate tariffs, access, and standards in international trade.

Direct Enforcer

A principal or authority that ensures compliance with rules or laws directly, without intermediaries.