One of the Key Assumptions of the Heckscher-Ohlin Theory Is

question 19

Multiple Choice

One of the key assumptions of the Heckscher-Ohlin theory is that:

• A) technologies are the same across countries.
• B) the prices of resources in different countries are similar.
• C) resources can move freely from the production of one good to another within a country.
• D) trade has no effect on income distribution in a country.
• E) trade patterns are largely driven by international differences in productivity.