Heckscher-Ohlin theory explains trade based on:
Options
ALabour productivity
BFactor endowment
CTechnology
DDemand conditions
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International TradePYQ - Nov 2018 (Inter)Question 162 of 20
All Questions Correct Answer
✅ Option b — Factor endowment
All Options:
- ALabour productivity
- BFactor endowment
- CTechnology
- DDemand conditions
About This Chapter: International Trade
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Theories, Trade Policy, Exchange Rates
This chapter explores trade between nations — why countries trade, the theories of Absolute and Comparative Advantage, Balance of Payments, Exchange Rate systems (Fixed vs Flexible), and India's trade policy including tariffs, quotas, and WTO rules.
View Official ICAI SyllabusExam Strategy Tip
Understand Comparative Advantage theory thoroughly — it's the foundation of international trade. Also focus on the Balance of Payments structure and what causes deficits.
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