An Implication of the Heckscher-Ohlin Theorem Is That

question 31

Multiple Choice

An implication of the Heckscher-Ohlin theorem is that

• A) if two countries have identical tastes, then no trade will occur between them.
• B) the relative price of a country's scarce factor of production will rise when the Country is opened to trade.
• C) income distribution in a country does not change when a country is opened to trade.
• D) two countries with identical tastes can still have a basis for trade if factor endowments Of the countries differ and if factor intensities of the commodities differ.

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Definitions:

Carotenoids

Pigments found in plants, algae, and photosynthetic bacteria that play a key role in plant color and photosynthesis.

Yellow

A primary color in the spectrum of light, visible to the human eye and typically associated with sunshine, energy, and caution.

Carbon Fixation Reactions

Chemical reactions that convert carbon dioxide into organic compounds during photosynthesis, forming the basis for sustaining the ecosystem’s energy flow.

Light-dependent Reactions

The first stage of photosynthesis, occurring in the thylakoid membranes, where light energy is converted into chemical energy as ATP and NADPH.