What is the main idea of the Heckscher-Ohlin Theory?
Countries will export goods that use their abundant and cheap factors of production and import goods that use the countries' scarce factors
Free trade always benefits both countries
The wealthier the country, the better it will do in trade
Trade agreements are always unfair to the smaller country
Answer
The Heckscher-Ohlin theory is a trade theory that predicts the pattern of international trade based on the relative abundance of factors of production in countries. Countries with abundant and cheap factors of production will export goods that use those factors, and import goods that use the countries' scarce factors.
The Ohlin Odyssey: An Engaging English Quiz on the Life and Contributions of Bertil Ohlin
More Questions
How many times did Bertil Ohlin serve as the President of the Nordic Council?
Who succeeded Ohlin as the leader of the People's Party?
In which year did Ohlin start leading the People's Party?
Who is the Heckscher in the Heckscher–Ohlin model?
Who was the co-recipient of the Nobel Memorial Prize in Economic Sciences in 1977 with Bertil Ohlin?
Subscribe Now!
Learn something
new everyday
Playing quizzes is free! We send 1 quiz every week to your inbox