Podcast
Questions and Answers
What is the essence of the Heckscher-Ohlin model?
What is the essence of the Heckscher-Ohlin model?
- Trade is driven by differences in currency exchange rates.
- Trade is driven by differences in population size across countries.
- Trade is driven by differences in factor abundance across countries. (correct)
- Trade is driven by differences in political ideologies across countries.
What does the Heckscher-Ohlin model predict about goods trade across countries?
What does the Heckscher-Ohlin model predict about goods trade across countries?
- Goods trade should be independent of any factors.
- Goods trade should only focus on currency exchange rates.
- Goods trade should embody factor differences. (correct)
- Goods trade should ignore factor differences.
Why is the empirical success of testing the Heckscher-Ohlin model limited?
Why is the empirical success of testing the Heckscher-Ohlin model limited?
- Due to factors that have no impact on the prediction for factor-price equalization.
- Due to factors that enhance the prediction for factor-price equalization.
- Due to factors that support the prediction for factor-price equalization.
- Due to factors that undermine the prediction for factor-price equalization. (correct)
What is a way to improve the predictive success for the factor content of trade according to the text?
What is a way to improve the predictive success for the factor content of trade according to the text?
In what way was the United States considered a special case among countries discussed in the text?
In what way was the United States considered a special case among countries discussed in the text?
What did economist Wassily Leontief find in his 1953 study?
What did economist Wassily Leontief find in his 1953 study?
Based on the information provided, why was the result of the Leontief paradox surprising?
Based on the information provided, why was the result of the Leontief paradox surprising?
What does the text suggest about the types of products the United States tended to export?
What does the text suggest about the types of products the United States tended to export?
In the study by Bowen, Leamer, and Sveikauskas, how did they assess a country's factor abundance?
In the study by Bowen, Leamer, and Sveikauskas, how did they assess a country's factor abundance?
Why is the concept of factor content of trade important in understanding a country's trade patterns?
Why is the concept of factor content of trade important in understanding a country's trade patterns?
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