Like Ricardo's Theory,the Heckscher-Ohlin Theory Argues That Free Trade Is

question 80

True/False

Like Ricardo's theory,the Heckscher-Ohlin theory argues that free trade is beneficial.Unlike Ricardo's theory,however,the Heckscher-Ohlin theory argues that the pattern of international trade is determined by differences in factor endowments,rather than differences in productivity.

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Definitions:

Resource Prices

The costs associated with the factors of production like labor, capital, land, and entrepreneurship used in the creation of goods or services.

Income Distribution

The way in which a nation's total earnings are divided among its population.

Marginal Revenue Product

The extra income created by using an additional unit of a production resource or input.

Price of Labor

The wages or compensation workers receive in exchange for their labor, determined by various factors including skill level, demand, and economic conditions.