The trade model of the Swedish economists Heckscher and Ohlin maintains that:
Options:
| a. Absolute advantage determines the distribution of the gains from trade. b. Comparative advantage determines the distribution of the gains from trade. c. The division of labor is limited by the size of the world market. d. A country exports goods for which its resource endowments are most suited. |
The Correct Answer Is:
d. A country exports goods for which its resource endowments are most suited.