Which of the Following Would Not Be Predicted by the Hecksher-Ohlin

question 1

Multiple Choice

Which of the following would not be predicted by the Hecksher-Ohlin theorem?

• A) the US should export capital-intensive and technology-intensive goods
• B) India should export labor-intensive goods
• C) Canada should have a comparative advantage in forestry
• D) Kuwait should specialize in the production of oil
• E) Central African Republic should have a comparative advantage in fisheries

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Definitions:

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage.

Margin

The difference between the selling price of a product or service and the cost associated with producing it, usually expressed as a percentage of sales.

Marginal Subcontracting Cost

The additional cost incurred for each unit of production outsourced to a third party, rather than produced in-house.

Layoff Cost

The financial impact associated with reducing a company's workforce, including severance pay, unemployment benefits, and potential legal costs.