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like ricardos theory, the heckscher - ohlin theory argues that free tra…

Question

like ricardos theory, the heckscher - ohlin theory argues that free trade is beneficial. unlike ricardos theory, however, the heckscher - ohlin theory argues that the pattern of international trade is determined by differences in factor endowments, rather than differences in productivity.

true
false

Explanation:

Brief Explanations

Ricardo's theory emphasizes productivity - based comparative advantage. The Heckscher - Ohlin theory focuses on factor endowments (such as land, labor, and capital) determining trade patterns. Both support free trade, but differ in what determines trade patterns.

Answer:

True