The HO Model Rules Out the Classical Model's Basis for Trade

question 12

Multiple Choice

The HO model rules out the classical model's basis for trade by assuming that ________ is (are) identical between countries.

• A)factor endowments
• B)factor intensities
• C)technology
• D)opportunity costs

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Definitions:

Phospholipids

A class of lipids that are a major component of all cell membranes and can form lipid bilayers because of their amphiphilic characteristic.

Plasma Membrane

The organic membrane distinguishing the inner part of all cells from the outer environment, managing the flow of substances to and from the cells.

Cholesterol

A lipid molecule essential for the structure of cell membranes and precursor of steroid hormones, vitamin D, and bile acids.

G-Protein Complex

A molecular switch that plays a critical role in transmitting signals from external stimuli to initiate internal cellular responses.