Which Theory States That a Nation Will Tend to Export

question 23

Multiple Choice

Which theory states that a nation will tend to export commodities intensive in its relatively abundant and cheap factor?

• A)Heckscher-Ohlin theory
• B)Stolper-Samuelson theory
• C)Product cycle theory
• D)Intraindustry trade theory

---

Definitions:

Profitability

A measure of the efficiency and financial success of a business, indicated by the ratio of profits generated to the amount invested or revenue.

Improve Profitability

Strategies or actions undertaken to increase the net income relative to revenues of a business or investment.

Postponement

A strategy used in supply chain management where the final assembly or customization of a product is delayed until the last possible moment to reduce inventory costs and enhance customization.

Optimal Number

The most favorable quantity that achieves a specific goal, often related to efficiency or cost-effectiveness.