The Heckscher-Ohlin Model Assumes That a Nation's Two Industries Use

question 26

Multiple Choice

The Heckscher-Ohlin model assumes that a nation's two industries use labor and capital:

• A) at different intensities depending on changing technology.
• B) at different intensities, with one being more capital-intensive than the other.
• C) at the same intensity in each industry; that is, the capital-labor ratio is the same in each industry.
• D) in no definite pattern.

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Definitions:

Intangible

Describes assets or value that cannot be physically touched or seen but have importance or worth, such as intellectual property or brand reputation.

Acquisition

The purchase of one company by another.

Economies Of Scale

The cost advantage that arises with increased output of a product, as the fixed costs are spread out over more units of production.

Merger

The combination of two or more companies into a single entity, often with the goal of increasing market share, reducing costs, or gaining access to new markets or technologies.