Which of the following statements regarding the heckscher-ohlin model and Ricard

Question

Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE? a. Both the Heckscher-Ohlin and Ricardian models are current, relevant, and applicable in explaining world trade patterns b. The Ricardian model is an excellent simplified introduction to world trade patterns, but the Heckscher-Ohlin model is more relevant in regards to explaining empirical evidence c. The Ricardian model is useless in explaining trade patterns, and the H-O theory, though applicable, is not sufficient for explaining real world trade patterns d. The Ricardian model is extremely useful in analyzing trade patterns, but the H-O model is only useful in theoretical applications.

Explanation / Answer

a. Both the Heckscher-Ohlin and Ricardian models are current, relevant, and applicable in explaining world trade patterns

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