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Author Question: A significant portion of actual world trade patterns results from (Read 71 times)

bobbie

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Question 1

The software industry depends on highly trained workers, who are abundantly available in Country A. The heavy equipment industry depends on the availability of a large stock of physical capital with which Country B is well endowed. According to Heckscher-Ohlin theorem


◦ Country A should export heavy equipment.
◦ Country B should import software.
◦ Country B should import heavy equipment.
◦ Country A should import software.

Question 2

A significant portion of actual world trade patterns results from


◦ different factor endowments between countries.
◦ the different tastes and preferences of people in different countries.
◦ the industrial policies of governments.
◦ different sizes of the countries.


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Marked as best answer by bobbie on Apr 19, 2019

dreamfighter72

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bobbie

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dreamfighter72

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