Multiple Choice
An implication of the Heckscher-Ohlin theorem is that
A) if two countries have identical tastes, then no trade will occur between them.
B) the relative price of a country's scarce factor of production will rise when the Country is opened to trade.
C) income distribution in a country does not change when a country is opened to trade.
D) two countries with identical tastes can still have a basis for trade if factor endowments Of the countries differ and if factor intensities of the commodities differ.
Correct Answer:

Verified
Correct Answer:
Verified
Q21: If relatively capital-abundant country A opens trade
Q22: Which one of the following is NOT
Q23: The Stolper-Samuelson theorem suggests that, when a
Q24: In the situation of "demand reversal" in
Q25: (a) In a 2x2x2 context, state the
Q26: (a) State the Heckscher-Ohlin theorem. Then, in
Q27: In the "specific-factors" model where capital in
Q28: If country I is defined as "relatively
Q29: In the following diagram,<br><img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1413/.jpg" alt="In the
Q30: In a two-country world, if country A