Questions and Answers
What is the essence of the Heckscher-Ohlin model?
Trade is driven by differences in factor abundance across countries.
What does the Heckscher-Ohlin model predict about goods trade across countries?
Goods trade should embody factor differences.
Why is the empirical success of testing the Heckscher-Ohlin model limited?
Due to factors that undermine the prediction for factor-price equalization.
What is a way to improve the predictive success for the factor content of trade according to the text?
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In what way was the United States considered a special case among countries discussed in the text?
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What did economist Wassily Leontief find in his 1953 study?
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Based on the information provided, why was the result of the Leontief paradox surprising?
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What does the text suggest about the types of products the United States tended to export?
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In the study by Bowen, Leamer, and Sveikauskas, how did they assess a country's factor abundance?
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Why is the concept of factor content of trade important in understanding a country's trade patterns?
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