The Heckshcer-Ohl assumes that are indentical between countries?
Correct answer: D. Both A and B
- A. tastes and preferences
- B. technology levels
- C. factor indowments
- D. Both A and B
Explanation
The Heckscher-Ohlin model commonly holds tastes and preferences and production technology constant across countries, while allowing factor endowments to differ. Thus both A and B are intended to be identical.
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