5. The Heckscher-Ohlin theory of international trade claims that: a. The global market determines the division of labor b. The gains from trade are attributed to comparative advantage c. The gains from trade are attributed to the concept of absolute advantage d. A country’s resource endowments define the country’s exports

5. The Heckscher-Ohlin theory of international trade claims that: a. The global market determines the division of labor b. The gains from trade are attributed to comparative advantage c. The gains from trade are attributed to the concept of absolute advantage d. A country’s resource endowments define the country’s exports

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 4CQQ

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Question

5. The Heckscher-Ohlin theory of international trade
claims that:
a. The global market determines the division of labor
b. The gains from trade are attributed to comparative advantage
c. The gains from trade are attributed to the concept of absolute advantage
d. A country’s resource endowments define the country’s exports

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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