Which Theory Suggests That Nations Will Develop Comparative Advantages Based

question 9

Multiple Choice

Which theory suggests that nations will develop comparative advantages based on their locally abundant factors? 

• A) Heckscher-Ohlin theory 
• B) Absolute advantage theory 
• C) Comparative advantage theory 
• D) Strategic trade theory

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Definitions:

Projection and Denial

Defense mechanisms; projection involves attributing one's own unacceptable thoughts or feelings to others, while denial involves refusing to acknowledge reality or facts.

Projection and Rationalization

Projection and rationalization are defense mechanisms; projection involves attributing one's own unacceptable thoughts or feelings to others, while rationalization involves justifying behaviors or feelings with seemingly logical reasons to avoid the true explanation.

Rationalization

A coping technique that involves providing logical or rational justifications for questionable behaviors or emotions to sidestep their real causes.

Stockholm Syndrome

A psychological response wherein hostages or abduction victims develop a bond with their captors during captivity.