The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former:

CA Foundation · Business Economics · MTP · April 2025
The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that the former:
(A) A. has only two countries.
(B) B. has only two products.
(C) C. has two factors of production.
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. has two factors of production.

Topics: International Trade

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