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

question 55

Multiple Choice

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

• A)technologies are the same across countries.
• B)differences in the prices of resources in different countries do not exist.
• 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.

---

Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Direct Relationship

A situation where two variables move in the same direction, meaning that as one variable increases, the other also increases, or as one decreases, the other also decreases.

Variables

Elements, features, or factors that are likely to vary or change from one instance to another within a study or experiment.

Uniquely Determined

A condition where a solution or outcome is specified exactly by the given constraints or equations without ambiguity.