Assume that only two countries, A and B exist, as shown in the table below.Factor endowmentsLabour force 45Capital stock 15Country A Country BIf good S is capital intensive, then following the Heckscher-Ohlin theory:O C.2010O a. country A will export good S.O b. trade will not occur between these two countries.both countries will export good S.both countries will import good S.country B will export good S.O d.O e.A

The Heckscher-Ohlin theory explains that countries tend to specialize in producing goods that…

Assume that only two countries, A and B exist, as shown in the table below. Factor endowments Labour force 45 Capital stock 15 Country A Country B 20 10 If good S is capital intensive, then following the Heckscher-Ohlin theory: a. country A will export good S. O b. trade will not occur between these two countries. C. d. e. both countries will export good S. both countries will import good S. country B will export good S. 4

Assume that only two countries, A and B exist, as shown in the table below. Factor endowments Labour force 45 Capital stock 15 Country A Country B 20 10 If good S is capital intensive, then following the Heckscher-Ohlin theory: a. country A will export good S. O b. trade will not occur between these two countries. C. d. e. both countries will export good S. both countries will import good S. country B will export good S. 4

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains Rrom Trade

Section: Chapter Questions

Problem 9PA

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