Economics · International Trade Theories
Wassily Leontief's empirical test on U.S. trade patterns showed that the United States, despite being capital-abundant, exported labor-intensive goods and imported capital-intensive goods. This finding directly contradicted the predictions of which trade theory?
- 1Gravity Model of Trade
- 2Mercantilist Theory
- 3Heckscher-Ohlin Theory✓
- 4Ricardian Theory
Correct answer
Heckscher-Ohlin Theory
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