Which One of the Following Is NOT an Assumption in the Heckscher-Ohlin

question 22

Multiple Choice

Which one of the following is NOT an assumption in the Heckscher-Ohlin analysis?

• A) constant returns to scale
• B) imperfect competition
• C) identical production functions across countries
• D) identical tastes across countries

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Definitions:

Independent Leasing Company

A firm that specializes in leasing equipment or vehicles to businesses or individuals, not affiliated with a manufacturer or vendor of the items leased.

Financial Lease

A long-term lease agreement where the lessee assumes both the rights and risks of asset ownership, effectively treating it as a purchase for accounting purposes.

Cancellable Without Penalty

This term refers to an agreement or contract that can be ended or cancelled without any financial penalties being incurred by the party seeking to terminate the agreement.

Financial Lease

A long-term, non-cancellable lease contract where the lessee is responsible for maintenance and has the option to acquire ownership at the end of the lease term.