The Heckscher­Ohlin Model Assumes That Production

question 52

Multiple Choice

The Heckscher­Ohlin model assumes that production
Techniques within a nation use the factors of production:

• A)at different intensities depending on changing technology and which nation you are discussing.
• B)at different intensities for each industry, so that one is more or less intensive in that factor than the other.
• C)at the same intensity for each industry-for example, the ratio of capital to labor is the same for every industry in
• The nation.
• D)in no definite pattern.

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Definitions:

Decrease Assets

A reduction in the total value or amount of economic resources owned or controlled by an entity.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, reflecting the ownership interest in the company.

Cash

Currency and other liquid instruments that are used to conduct transactions or settle debts.

Accounts Receivable

Funds that customers owe to a company for products or services already provided but not yet compensated for.