The Leontief Paradox challenges the validity of the Hechscher-Ohlin model and Theorem because:
options:
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Wassily Leontief was a Russian Marxist. |
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the Leontief production function relied on fixed inputs. |
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Leontief developed an input-output model that was better than the Hecksher-Ohlin model. |
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Leontief helped manage the US economy during the 2nd World War. |
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Leontief developed an empirical test of the Heckscher-Ohlin model and the results of the test did not match the prediction of the Heckscher-Ohlin Theorem. |
Q. The Leontief Paradox challenges the validity of the Hechscher-Ohlin model and Theorem because:
Ans. Leontief developed an empirical test of the Heckscher-Ohlin model and the results of the test did not match the preiction of the Heckscher-Ohlin Theorem.
The Leontief model questioned the applicability of the Heckscher-Ohlin model by concluding that the United States exported labor-intensive goods.
The Leontief Paradox challenges the validity of the Hechscher-Ohlin model and Theorem because: options: Wassily Leontief...
Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...