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

question 82

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-Ohlin 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-Ohlin 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-Ohlin 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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