Foreıgn Trade Deneme Sınavı Sorusu #1396980
Which of the following is true for Factor-Intensity Reversal?
It explains how international trade is realized under the short run factor immobility within the Heckscher-Ohlin Theory context. |
According to it, the factor mobility that is assumed by the Heckscher-Ohlin Theory can only be attained in the long run. |
It postulates that some of the factors of production can be immobile or can only be used in the production of a commodity. |
According to it, the mobility of the factors of production within a country cannot be attained if one of the factors is a specific factor. |
It explains the situation in which a commodity is the labor-intensive commodity in the labor-abundant country and the capital-intensive commodity in the capital- abundant country. |
Factor-Intensity Reversal explains the situation in which a commodity is the labor-intensive commodity in the labor-abundant country and the capital-intensive commodity in the capital- abundant country. All the other items are related to Specific Factors Model.
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