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:

Technology

Material artifacts and the knowledge and techniques required to use them.

Internet

A global network of computers that provides a wide range of information and communication facilities, consisting of interconnected networks using standardized communication protocols.

Leisure Time

Free time available to a person apart from commitments to work or domestic chores, often used for relaxation or hobbies.

Commodification

The process by which it becomes possible to buy and sell a particular good or service.