The Heckscher­Ohlin Theorem Explains Patterns of Trade

question 17

Multiple Choice

The Heckscher­Ohlin theorem explains patterns of trade
Between countries using:

• A)economies of scale.
• B)monopoly power in the industry.
• C)abundance or scarcity of resources.
• D)tariffs and quota.

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Definitions:

Individual Asset

A single item of property, whether tangible or intangible, that is owned and has value to the entity holding it.

Liability Decreases

A reduction in the amounts owed by an entity to external parties or creditors.

Debit Balance

An account balance where the total debits exceed the total credits, often indicating the amount that a company or individual owes.

Credit Balance

A situation where the total credits in an account exceed the total debits, common in liability and revenue accounts.