The Heckscher- Ohlin Model Predicts All of the Following EXCEPT

question 38

Multiple Choice

The Heckscher- Ohlin model predicts all of the following EXCEPT

• A)which country will export which product.
• B)that trade increases a country's overall welfare.
• C)that relative wages will tend to become equal in both trading countries.
• D)which factor of production within each country will gain from trade.
• E)the volume of trade.

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Definitions:

Train Manufacturer

A company that specializes in the production and assembly of trains and related railway equipment.

Airplane Manufacturer

A company or entity involved in the designing, building, and selling of aircraft.

Planning

The process of defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Business Strategy

A plan of action designed to achieve specific long-term goals and objectives, guiding the direction of a business's efforts.