How Does the Heckscher-Ohlin Theory Explain Why There Is International

question 60

Multiple Choice

How does the Heckscher-Ohlin theory explain why there is international immigration?

• A)Countries that recognize the logic of comparative advantage reduce barriers to international migration.
• B)Protectionism,which benefits the abundant factor,forces the scarce factor to leave a country in search of greater profits.
• C)Differences in factor endowment lead to the export of goods,capital,or people associated with a country's scarce factor.
• D)Differences in factor endowment lead to the export of goods,capital,or people associated with a country's abundant factor.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, reinvestment, or to pay debt, rather than being distributed to shareholders as dividends.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as a yearly rate.

Net New Equity

Refers to the amount of money raised by a company through the issuance of new shares, subtracting any repurchases of existing shares.

Earnings Before Interest And Taxes

This represents the company’s earnings before the deduction of interest and tax expenses.