πŸ“Š International Economics
Q. The trade model of the Swedish economists Heckscher and Ohlin maintains that:
  • (A) Absolute advantage determines the distribution of the gains from trade
  • (B) Comparative advantage determines the distribution of the gains from trade.
  • (C) The division of labor is limited by the size of the world market
  • (D) A country exports goods for which its resource endowments are most suited.
πŸ’¬ Discuss
βœ… Correct Answer: (D) A country exports goods for which its resource endowments are most suited.

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