Identify the Theory That Predicts That Countries Will Export Those

question 25

Multiple Choice

Identify the theory that predicts that countries will export those goods that make intensive use of factors that are locally abundant.

• A) Theory of comparative advantage
• B) Ricardo theory
• C) New trade theory
• D) Heckscher-Ohlin theory

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Definitions:

Deliberate

To think over or consider something carefully and intentionally before making a decision or taking action.

Positive Compatibility

The degree to which individuals, systems, or concepts can coexist or work together in harmony, producing beneficial outcomes.

Cutting Pattern

The designed arrangement or plan for cutting materials in order to minimize waste or maximize efficiency.

Scrap

Waste material or any unwanted item that can be removed from a process, often recycled or sold to reclaim value.