The Heckscher-Ohlin Model Predicts That the Factor of Production Used

question 117

Multiple Choice

The Heckscher-Ohlin model predicts that the factor of production used more intensively in the production of exports will experience:

• A) decreased demand and a decline in its relative price.
• B) decreased demand and an increase in its relative price.
• C) increased demand and an increase in its relative price.
• D) no change in its demand because the factors of production are fixed in the short run.

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Definitions:

Early Debt Retirement

Early debt retirement is the repayment of debt before its scheduled maturity date, which can reduce interest expenses and leverage.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by the application of resources to minimize or control the impact of such risks.

Traceable Costs

Traceable costs are specific expenses that can be directly linked to a particular cost object, such as a product, department, or project.

Period Costs

Expenses that are not directly tied to product production and are expensed in the accounting period in which they are incurred.