The Heckscher-Ohlin Theory Predicts That Trade Between Similar Industrialized Countries

question 48

Multiple Choice

The Heckscher-Ohlin theory predicts that trade between similar industrialized countries should:

• A)be much greater than trade between developed and developing countries.
• B)be rather limited in volume.
• C)consist mainly of highly sophisticated manufactured goods.
• D)be bidirectional with one country exporting products to the other countries and simultaneously importing very similar products from them.

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effects on dependent variables.

Interaction Effects

The influence that the combination of two or more independent variables has on a dependent variable, beyond their individual effects.

Income

The money received, especially on a regular basis, for work or through investments.

Gender

Social and cultural distinctions associated with being male or female, as opposed to biological differences.