The HO Model Rules Out the Classical Model's Basis for Trade

question 12

Multiple Choice

The HO model rules out the classical model's basis for trade by assuming that ________ is (are) identical between countries.

• A)factor endowments
• B)factor intensities
• C)technology
• D)opportunity costs

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Definitions:

Specialization

The practice of focusing effort on a particular field or discipline, leading to increased efficiency and expertise in that area.

Cheese

A dairy product made from curdled or cultured milk, coming in various textures and flavors.

Opportunity Cost

The loss of value from not opting for the closely competing alternative when faced with a decision.

Walking Sticks

Mobility aids used to assist in walking, providing support and balance for individuals with mobility challenges.