How Does the Heckscher-Ohlin Approach Explain Why There Is International

question 57

Multiple Choice

How does the Heckscher-Ohlin approach explain why there is international immigration?

• A)Countries who recognize the logic of comparative advantage reduce barriers to international migration.
• B)Protectionism,which benefits the abundant factor,forces the scarce factor to leave a country in search of greater profits.
• C)Differences between industry sectors determine whether labor would remain in a country or immigrate to another country.
• D)Differences in factor endowment lead to the export of goods or capital associated with a country's scarce factor.
• E)Differences in factor endowment lead to the export of goods or capital associated with a country's abundant factor.

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Definitions:

Rate of Return

The appreciation or depreciation in an investment's value over a set period, articulated as a percentage of the investment's buying price.

EPS

Earnings Per Share, a financial ratio indicating the amount of profit attributable to each share of common stock.

Annual Dividends

Regular payments made by a company to its shareholders out of its profits or reserves on a yearly basis.