Why Is "Intra-Industry" Trade Difficult for the Heckscher-Ohlin Trade Theory

question 71

Multiple Choice

Why is "intra-industry" trade difficult for the Heckscher-Ohlin trade theory to explain?

• A)Most of it is conducted between developing countries,which the theory predicts little of.
• B)Since the products are within the same industry and made with the same factors,differences in factor endowment cannot explain it.
• C)Countries with abundant labor are not expected to also import labor-intensive products.
• D)Industries are expected to compete with each and not trade with each when factors are immobile.

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Definitions:

Average Speed

A measure of the total distance traveled divided by the total time taken for the trip, used in various contexts to indicate speed consistency.

Daily Tonnage

The total weight of goods or materials processed or transported in a single day.

Checking Account Balances

The amount of money currently available in an individual's or organization's checking account.

Average Age

The sum of individual ages divided by the number of individuals, used to indicate the central or typical age in a group.