Which of the Following Statements Is a Fair Comparison of the Heckscher-Ohlin

question 40

Multiple Choice

Which of the following statements is a fair comparison of the Heckscher-Ohlin theory and the Ricardo theory (i.e.comparative advantage) of free trade?

• A)both theories argues that the pattern of international trade is determined by currency exchange rates
• B)the Heckscher-Olin theory argues that the pattern of international trade is determined by trade endowments, while the Ricardo theory argues that the pattern of international trade is determined by differences in productivity
• C)both theories argue that the pattern of international trade is determined by differences in productivity
• D)the Heckscher-Olin theory argues that the pattern of international trade is determined by differences in productivity, while the Ricardo theory argues that the pattern of international trade is determined by trade endowments
• E)the Heckscher-Olin theory argues that the pattern of international trade is determined by differences in demand conditions, while the Ricardo theory argues that the pattern of international trade is determined by national competitive advantages

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Definitions:

Tarsals

A group of seven bones in the foot located between the lower leg bones and the metatarsals, contributing to foot structure and movement.

Fibula

A smaller of the two bones in the lower leg, situated on the lateral side of the tibia.

Costal Cartilage

The bars of hyaline cartilage that connect the ribs to the sternum, contributing to the elasticity and expansion capability of the rib cage.

True Ribs

The first seven pairs of ribs that are directly attached to the sternum through their costal cartilages, providing vital protection for the thoracic organs.