Answered: In the Heckscher-Ohlin model the factor…

In the Heckscher-Ohlin model the factor that a country is abundant in will gain from trade, i.e. its income will increase. True False

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter33: International Trade

Section: Chapter Questions

Problem 3QP

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

In the Heckscher-Ohlin model the factor that a country is abundant in will gain from trade, i.e. its income will increase.

True

False

Definition Definition Any of the various net benefits or net gains that a country or trader makes by participating in international trade.

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