According to the Heckscher- Ohlin Theory, National Comparative Advantages Exist

question 6

Multiple Choice

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

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

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Definitions:

Cartel Members

Firms or entities that agree to control prices and production to monopolize a market or restrict competition.

Incentive To Cheat

The motivation or tendency to deceive or engage in dishonest practices for personal gain, often seen in competitive situations.

Kinked-Demand Curve

A demand curve that has a flatter slope above the current price than below the current price. Applies to a noncollusive oligopoly firm if its rivals will match any price decrease but ignore any price increase.

Noncollusive

Describes competitive behavior among firms in an industry that do not engage in collusion or agreements to control prices or market shares.