Suppose That There Are Two Factors, Capital and Land, and That

question 20

Multiple Choice

Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model

• A) European landowners should support U.S.-European free trade.
• B) the U.S. should compensate European countries once trade commences.
• C) European capitalists should support U.S.-European free trade.
• D) all landowners should support free trade.
• E) all capitalists in both countries should support free trade.

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Definitions:

Cultural Discontinuities

Gaps or inconsistencies that arise when different cultural backgrounds lead to misunderstandings or conflicts in values, expectations, or behaviors.

Unexamined Assumptions

Preconceived notions or beliefs that are accepted without questioning or critical analysis.

Cultural Reason

A cultural reason refers to the rationale or motive behind actions, beliefs, or customs, rooted in the traditions or values of a particular society.

Conference Schedules

The planned timetable of events, sessions, and activities that will take place during a conference.