What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade? Heckscher-Ohlin Leontief Ricardo Porter-Friedman

Question

Darren Adkins

Business

10 January, 11:45

What theory argues that free trade is beneficial, but that differences in factor endowments, not productivity, determine the pattern of international trade? Heckscher-Ohlin Leontief Ricardo Porter-Friedman

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Answers (1)

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Cristina Mitchell · Answer 1

The correct answer is letter "A": Heckscher-Ohlin.

Explanation:

Named after Swedish economists Eli Heckscher (1879-1952) and Bertil Ohlin (1899-1979), the Heckscher-Ohlin theory states that countries should focus their efforts on producing and exporting those goods they are good at manufacturing and they should import the goods they struggle in making. The concept is based on both the productivity and non-productivity of nations and their best bequests.