The Heckscher-Ohlin theory fails to explain extensive intra-industry trade primarily because it:
CA Foundation · Business Economics · RTP · May 2026
The Heckscher-Ohlin theory fails to explain extensive intra-industry trade primarily because it:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
B. Assumes constant returns to scale
Topics: International Trade
Related Questions in this Topic
- An important principle of GATT and WTO is the Most-Favoured-Nation (MFN) treatment, which means:
- Real exchange rate increases if:
- Foreign Direct Investment (FDI) is best distinguished from Foreign Portfolio Investment (FPI) by its:
- Non-tariff measures (NTMs) include all except:
- A specific tariff is different from an ad valorem tariff because it is: