Hecksher Ohlin theory

Hecksher Ohlin theory is known as..... Theory of international trade.

• Modern

• Classical

• Opportunity cost

• None of the above

Factor endowment theory of international trade developed by

• Adam Smith

• Hecksher Ohlin

• David Ricardo

• Alfred Marshall

HO theory explained the modern theory of trade in terms of....

• Factor intensity

• Factor abundance

• Factor endowment

• All the above

The countries which are rich in labour (Labour intensive) will export ..........intensive

goods according to HO theory.

• Labor

• Capital

• Machine

• All the above

The countries which are rich in ............ will export capital intensive goods

only due to their factor endowment (abundance).

• Capital

• Labor

• Water

• Food grain

With the help of digram answer the question.

• Capital is relatively cheper in country A

• Capital is relatively cheper in country B

• Capital is relatively costly in country A

• All the above

Answer the question with the help of digram

• CD curve shows that country is labour abundant country.

• B curve shows that country is labour abundant country.

• CD curve shows that country is capital abundant country.

• All the above

The country like USA which is more capital intensive, produces and exports labour

intensive goods, it is known as

• Leontief paradox

• Water diamond paradox

• Paradox of trift

• None of the above

The physical amount of each factor owned by the countries are ............

• Different

• Same

• Equal

Answer the question with the help of digram

• A. Country A is capital abundant country

• B. Country B is labour abundant country

• C. Country A is labour abundant country.

• D. Both A and B