In a Heckscher-Ohlin Context, Other Things Equal, Growth of the Relatively-Abundant

question 34

Multiple Choice

In a Heckscher-Ohlin context, other things equal, growth of the relatively-abundant factor Of production in a country that is a "large" country will lead to __________ willingness to trade and to __________ in the country's terms of trade.

• A) an increased willingness; a deterioration
• B) an increased willingness; an improvement
• C) a decreased willingness; a deterioration
• D) a decreased willingness; an improvement

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Definitions:

Journal Entry

A record in accounting that notes the details of a financial transaction.

Face Value

The nominal value of a security stated by the issuer, which is the amount to be repaid at maturity in the case of a bond or the value represented by each share of stock.

Retired Bonds

Bonds that have been paid off or bought back by the issuer before or at maturity, effectively removing them from existence and relieving the issuer of further obligations.

Effective-Interest Method

A method of calculating the amortized cost of a bond and the amount of interest expense over time, by applying a constant interest rate to the carrying value of the bond.