For most developing countries A) productivity is high among ...

[theo]

For most developing countries
 
  A) productivity is high among domestic workers.
  B) population growth and illiteracy rates are low.
  C) saving and investment levels are high.
  D) agricultural goods and raw materials constitute a high proportion of domestic output.
  E) pollution emissions are relatively low.

Question 2

Why do you suppose that South-South trade does not conform in volume, but does conform in pattern with expectations generated by the Heckscher-Ohlin model?
 
  What will be an ideal response?

[ansleighelindsey]

Answer to Question 1

D

Answer to Question 2

The pattern of trade is generally observed to conform to the Heckscher-Ohlin models expectations. That is, the developing countries tend to export labor-intensive goods, such as textiles, and import capital-intensive goods such as machinery. The volume however is quite lower than what would be expected from the Neoclassical model. There are many possible reasons, such as financial crises necessitating premia in the financing of this trade.