In the context of modern trade theories, which of the following are true regarding the Heckscher-Ohlin theory?
  1. It posits that countries will export goods that utilize their abundant factors of production.
  2. It explains trade patterns based solely on technological differences.
  3. It assumes that factors of production are mobile within countries but not between them.
  4. The theory suggests that differences in factor endowments lead to comparative advantages.

1
1 and 4
2
2 and 4
3
1 and 3
4
1, 2 and 3
5
Question Not Attempted

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