Heckscher-ohlin theory, International Economics

Assignment Help:

Q. Countries do not in fact export the goods the H.O. theory predicts. Discuss.

Answer: This statement isn't true that though one may find several cases where it seems to be true (e.g. the Leontieff Paradox), all one requires to do in order to render the above statement not (generally) true is to find one counter example. Actually, one is able to find large subsets of agricultural and commodity products in which the H.O predictions are usually fulfilled. Labor-intensive countries for instance Bangladesh does in fact export relatively labor-intensive goods. Capital-intensive countries for instance Germany does in fact export capital-intensive products at least to South countries. Countries for illustration Costa Rica ("sunshine abundant") tend to export bananas (sunshine-intensive products). The U.S. (a wheat-land -abundant country) does certainly export wheat (a wheat-land intensive product). Actually, ever since the early 1980s, the Leontieff Paradox wasn't found to describe the U.S. trade data therefore ratifying the H.O. theory.


Related Discussions:- Heckscher-ohlin theory

What is the exchange rate risk facing parson company, Question: a) With...

Question: a) With the help of illustrative and numerical examples explain fully the concepts of spatial and triangular parity and arbitrage in the context of foreign exchange.

Does foreign aid lead to economic growth?, Question 1: The main challen...

Question 1: The main challenge facing governments in the 21st century revolves around containing and/or downsizing of public spending. Explain why reduced government interventi

What do you think about dollarization, Q. What do you think about dol...

Q. What do you think about dollarization? Answer: The respond is almost certainly a bad idea unless in the very short run. It must talk about the loss of seigniorage a

International trade commission proceedings, Q. It can be demonstrated that...

Q. It can be demonstrated that any protectionist policy, which effectively shifts real resources to import competing sector or industry, will harm export industries or sectors. T

Income distribution, argument about fair distribution of income and gnp as ...

argument about fair distribution of income and gnp as a measurment of economic growth

Double factors terms of trade, Calculate the doublefactoral terms of trade ...

Calculate the doublefactoral terms of trade (TD), formulated by Jacob Viner based on following information: Suppose in the base year of 2015, Px= 100, Pm= 100, Zx= 100, Zm= 100and

Hoe to calculate balance of payments, Q. Explain why in practice the extent...

Q. Explain why in practice the extent to which a measured balance of payments disparity, either a surplus or a deficit, will affect home and foreign money supply is quite uncertain

Effects of ongoing inflation based on the ppp theory, Q. Discuss th...

Q. Discuss the effects of ongoing inflation based on the PPP theory. Answer: Other things equivalent money supply growth at a constant rate eventually results in ongoi

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