Economics · International Trade Theories

The Heckscher-Ohlin model of international trade maintains that:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Gains from trade accrue only to capital-abundant nations
2Trade occurs only due to transport cost differentials
3A country exports goods that intensively use its abundant factor endowment✓
4Absolute differences in labor productivity determine trade flow

Correct answer

A country exports goods that intensively use its abundant factor endowment

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The Heckscher-Ohlin model of international trade maintains that:

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The Heckscher-Ohlin model of international trade maintains that:

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