The Difference Between Ricardo's Theory and the Heckscher-Ohlin Theory Is

question 125

Multiple Choice

The difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory

• A) makes more simplifying assumptions.
• B) cannot be subjected to empirical tests.
• C) actually predicts trade patterns with greater accuracy.
• D) argues that the pattern of international trade is determined by differences in national factor endowments.
• E) suggests that trade is a positive-sum game in which all countries that participate realize economic gains.

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Definitions:

Attribution Distortion

The tendency to inaccurately attribute causes or reasons to behaviors or events often leading to biased judgment.

Self-Preoccupation

An excessive focus on oneself and one's own needs, often at the expense of others.

Defensiveness

A psychological reaction that occurs in response to perceived threats to one's self-esteem or self-concept.

Game Playing

Engaging in competitive activities governed by rules for the purpose of entertainment, strategy, or education.