In the context of modern trade theories, which of the following are true regarding the Heckscher-Ohlin theory?
- It posits that countries will export goods that utilize their abundant factors of production.
- It explains trade patterns based solely on technological differences.
- It assumes that factors of production are mobile within countries but not between them.
- 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