The Difference Between Ricardo's Theory and the Heckscher-Ohlin Theory Is

question 125

Multiple Choice

The difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory

• A) makes more simplifying assumptions.
• B) cannot be subjected to empirical tests.
• C) actually predicts trade patterns with greater accuracy.
• D) argues that the pattern of international trade is determined by differences in national factor endowments.
• E) suggests that trade is a positive-sum game in which all countries that participate realize economic gains.

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Definitions:

Reconstruction

The period following the Civil War (1865-1877) during which the United States attempted to reintegrate the Southern states into the Union and address the social, political, and economic issues arising from emancipation.

Agribusiness

The industry involved in the production, processing, and distribution of agricultural products, often on a large scale.

Impeachment

A formal process in which an official is accused of unlawful activity, potentially leading to the removal from office.

President Johnson

Likely refers to Lyndon B. Johnson, the 36th President of the United States, known for his domestic policies, including the Great Society programs.