There Are Many Real­life Examples of Factor­intensity

question 86

Multiple Choice

There are many real­life examples of factor­intensity
Differences across the same industries in different nations.
How does the Heckscher­Ohlin model handle this?

• A)The HO model makes no assumptions about different factor intensities.
• B)The HO model assumes that all firms require equal amounts of capital and labor just to be on the safe side.
• C)The HO model ignores the possibility of different factor intensities and instead assumes that each industry has the
• Same factor intensity in every nation.This assumption
• Enables the model to predict trade based on other factors.
• D)Actually, the factor­intensity reversal issue does not change the predictive value of the model.

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Definitions:

Monozygotic

Referring to twins developed from a single fertilized ovum, hence they are genetically identical.

Codominant

A genetic scenario in which two alleles of a gene are expressed equally in the phenotype of heterozygotes.

Heterozygous Individual

A heterozygous individual possesses two different alleles of a gene for a particular trait, resulting in genetic variation.

Different Alleles

Variations or alternative forms of a gene that can exist at a single locus (position) on a chromosome.