Which of the following is the reason why most economists prefer Heckscher-Ohlin theory to Ricardo’s theory?

Which of the following is the reason why most economists prefer Heckscher-Ohlin theory to Ricardo’s theory?

A. Heckscher-Ohlin stresses on the differences in productivity between nations.

B. Ricardo’s theory considers factor endowments to describe national competitiveness.

C. Heckscher-Ohlin theory makes fewer simplifying assumptions.

D. Ricardo’s theory considers the law of marginal returns.

ANSWER:

C. Heckscher-Ohlin theory makes fewer simplifying assumptions.