The Key Assumptions for the H-O Theory to Work Are

question 18

Multiple Choice

The key assumptions for the H-O theory to work are: (1) perfect immobility of factors of production among countries; and (2) _____.

• A) perfect competition in the workplace
• B) superior allocation of production of goods and services
• C) very small labor force
• D) the existence of a trade surplus
• E) the acceleration of a trade deficit

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Definitions:

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Legally responsible or accountable, typically in the context of financial or legal obligations.

Detailed Workings

Refers to the intricate details or processes involved in how something operates, functions, or is constructed.

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Leaders who achieve desired results through efficient planning, organization, direction, and control of resources and operations.

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