According to the Heckscher-Ohlin Model

question 19

Multiple Choice

According to the Heckscher-Ohlin model

• A) the gainers from trade could compensate the losers and still retain gains.
• B) everyone gains from trade.
• C) the scarce factor gains from trade and the abundant factor loses.
• D) a country gains from trade if its exports have a high value added.
• E) only the country with the more advanced technology gains from trade.

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Definitions:

Restraints of Trade

Practices or agreements that limit competition or control prices within a market.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes.

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple companies, potentially reducing competition.

Clayton Act

A United States antitrust law enacted in 1914, aimed at preventing anticompetitive practices in their incipiency.