The Heckscher-Ohlin Model Assumes That Technology in Each Industry

question 97

Multiple Choice

The Heckscher-Ohlin model assumes that technology in each industry:

• A) is the same in each nation-each firm has access to the most profitable technology.
• B) has increasing returns so that one nation will be able to gain a comparative advantage by developing new technology.
• C) is very different across the world-some nations have access to technology, whereas others do not.
• D) is hard to access because R&D is very expensive especially for low-income nations.

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Definitions:

Alkaloid

A class of naturally occurring organic compounds that mostly contain basic nitrogen atoms, often found in plants and possessing pharmacological effects.

Tobacco

A plant whose leaves are dried and fermented before being used in various ways, such as smoking, chewing, or sniffing, often containing nicotine, an addictive substance.

Fight-Or-Flight Response

Physiological changes in the human body that occur in response to a perceived threat, including the secretion of glucose, endorphins, and hormones as well as the elevation of heart rate, metabolism, blood pressure, breathing, and muscle tension.

Physiological Effects

The changes in the normal functioning of the body resulting from various factors, such as disease, substances, or environmental conditions.