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

Discuss main factors affecting position of the dd schedule, Q. Disc...

Q. Discuss the main factors affecting the position of the DD schedule. Answer: The level of government taxes, demand, and investment and the domestic and foreign price

Delay line, what is delay line in cro?

what is delay line in cro?

Evaluate the argentinean convertibility law, Q. Evaluate the Argentin...

Q. Evaluate the Argentinean Convertibility Law of April, 1991. Answer: Excellent idea in the short run disastrous idea in the long run. The law was discarded only in Ja

Describing the classical theory of international trade, I am trying to comp...

I am trying to complete this homework assignment and I need to use an example to describe and explain the classical theory of international trade, could you guys help me out?

INTERNATIONAL TREAD, WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

WHATE IS THE PROPERTY OF OFFER CURVE OF A COUNTRY

FREE TRADE AND PROTECTIONISM, WHY IS INTERNATIONAL TRADE IMPORTANT FOR SOUT...

WHY IS INTERNATIONAL TRADE IMPORTANT FOR SOUTH AFRICA

English, what is international economics ,why we study ,bebifits of interna...

what is international economics ,why we study ,bebifits of international economics ,which other is best for hhis ?

Peripheral Capitalism, I am writing a paper on dependancy theory in Ghana a...

I am writing a paper on dependancy theory in Ghana and I am having trouble understanding the basics of peripheral capitalism.

International economics, opportunity cost version is an improvement over th...

opportunity cost version is an improvement over the classical theory of international trade?comment

Neoclassical and classical trade theory, Q. Neoclassical and Classical tra...

Q. Neoclassical and Classical trade theory makes the case that free trade can bring a country to an optimum and economically efficient use of its resources; and therefore is an op

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