The Heckscher-Ohlin Model Differs from the Ricardian Model of Comparative

question 50

Multiple Choice

The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former

• A) has only two countries.
• B) has only two products.
• C) has two factors of production.
• D) has two production possibility frontiers (one for each country).
• E) has varying wage rates.

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Definitions:

Globalization

The process of increasing interconnectivity and interdependence of the world's markets and businesses, facilitated by advances in communication and transportation technology.

Economic Integration

A process by which countries reduce trade barriers to enable more free flow of goods, services, and capital among each other, leading to increased economic interdependence.

Geographic Locales

Geographic locales refer to specific geographical areas or locations, each with its own unique characteristics and cultural practices.

Capitalism

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.