The Assumption of Diminishing Returns in the Heckscher-Ohlin Model Means

question 6

Multiple Choice

The assumption of diminishing returns in the Heckscher-Ohlin model means that, unlike in the Ricardian model, it is likely that

• A) countries will not be fully specialized in one product.
• B) countries will benefit from free international trade.
• C) countries will consume outside their production possibility frontier.
• D) comparative advantage will not determine the direction of trade.
• E) global production will decrease under trade.

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Definitions:

Disjunctures

Points of disruption or disconnection within societal systems or between personal expectations and reality.

Technoscapes

Refers to the global landscape of technology, emphasizing how technological flows across borders shape cultures and interactions.

Arjun Appadurai

An influential contemporary anthropologist known for his work on globalization, focusing on the cultural dynamics of technology, finance, and social theory.

Cultural Hybrids

Entities or concepts that emerge from the blending or amalgamation of elements from different cultures, often leading to new forms of expression or identity.