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:

Environmental Stressors

External factors or conditions in the environment that can cause stress, such as noise, pollution, or extreme temperatures.

Physiological Reaction

A bodily response to a stimulus, which could be anything from an emotional event to a physical touch.

Cognitive Coping

Strategies that involve the conscious effort to solve personal and interpersonal problems, and seeking to master, minimize, or tolerate stress or conflict.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including hunger and temperature control.