Heckscher-ohlin model, Macroeconomics

Assignment Help:

Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE?

a. Both the Heckscher-Ohlin and Ricardian models are current, relevant, and applicable in explaining world trade patterns

b. The Ricardian model is an excellent simplified introduction to world trade patterns, but the Heckscher-Ohlin model is more relevant in regards to explaining empirical evidence

c. The Ricardian model is useless in explaining trade patterns, and the H-O theory, though applicable, is not sufficient for explaining real world trade patterns

d. The Ricardian model is extremely useful in analyzing trade patterns, but the H-O model is only useful in theoretical applications.


Related Discussions:- Heckscher-ohlin model

Demand for running shoes is highly inelastic, Assume that the demand for ru...

Assume that the demand for running shoes is highly inelastic and the supply curve for running shoes is highly elastic. Suppose that the tastes of the exercising public shift away f

Company undertake the project, Q1. A company selling widgets advertises thr...

Q1. A company selling widgets advertises through three types of media: print, television and internet. Recently the company has decided to increase its advertising budget by $100,0

Four big macroeconomic issues and their inter-relationships, THE FOUR BIG M...

THE FOUR BIG MACROECONOMIC ISSUES AND THEIR INTER-RELATIONSHIPS  1. Link between growth/development and the various factors of production of the commodities: Before we mov

Real GDP using chained-dollar method, 2012 Mangoes 91 boxes $7 a box ...

2012 Mangoes 91 boxes $7 a box Pinapples 56 boxes $12 a box 2013 Mangoes 108 boxes $14 a box Pinapples 70 boxes $8 a box Real GDP in 2013 using the chained-dol

Increase in the popularity, If there is an increase in the popularity of vi...

If there is an increase in the popularity of video games and more companies making video games, then the following is true? A) Sales of the games will be uncertain. B) Price will g

What causes economic growth, What causes economic growth? Causes of ec...

What causes economic growth? Causes of economic growth: Into the Solow model, economic growth is based onto the quantity and quality of technology and resources. Growth

Short-run framework, What is the difference between the short-run framework...

What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.

Definition of exchange rate, Definition of Exchange rate The exchange r...

Definition of Exchange rate The exchange rate is stated as the price of one unit of currency in terms of other currency. If one euro costs 1.5 USD then 1 USD costs 1/1.5 = 0.66

What is treasury bills, What is Treasury bills In most countries you wi...

What is Treasury bills In most countries you will find many types of government bonds. An important distinction is the duration of the bond, that is, the difference between the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd