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:

Capital Balances

The amount of money that owners have invested in a company, plus any retained earnings or minus any losses.

Partnership

An authorized business setup in which a group of individuals jointly manage the operation and distribution of profits.

Profit Share

A portion of a company's profits allocated to its employees, shareholders, or partners, often as an incentive or reward.

Capital Balances

Capital balances represent the amount of capital a business or individual has invested or retained in a company, often reflecting ownership equity.