Question

Who propounded a new theory, the factor Endowment theory in connection with international trade ?

• A. Ricardo
• B. Adam Smith
• C. J. S. Mill
• D. Bertil Ohlin

Answer 1

Answer:

D. Bertil Ohlin

Bertil Ohlin

• Sweedish Economist and politician who made significant contributions to international trade theory.
• The factor Endowment Theory , also known as the Heckscher - Ohlin model , explains international trade patterns based on differences in factor endowments between countries.
• The theory states that countries will export goods that require abundant factors of production and import goods that require scarce factors.