Match the following List – I with List – II List – IList – II (i) Theory of Availability (a) Linder…
The correct matching is (i) – b, (ii) – a, (iii) – d and (iv) – c. The Theory of Availability, which explains trade patterns through domestic availability of natural…
Choose your answer
Match the following List – I with List – II
| List – I | List – II |
|---|---|
| (i) Theory of Availability | (a) Linder |
| (ii) Theory of Volume of Trade and Demand | (b) Kravis |
| (iii) Technological Gap Theory | (c) Heckscher – Ohlin |
| (iv) Factor-Proportions Theory | (d) Posner |
Answer and explanation
Correct answer A
The correct matching is (i) – b, (ii) – a, (iii) – d and (iv) – c. The Theory of Availability, which explains trade patterns through domestic availability of natural resources and innovations, was proposed by Irving B. Kravis (b). Staffan Burenstam Linder propounded the Theory of Volume of Trade and Demand (overlapping demand or country similarity theory) (a), M. V. Posner developed the Technological Gap (imitation lag) Theory of trade (d), and Eli Heckscher and Bertil Ohlin formulated the Factor-Proportions (factor-endowment) Theory (c).
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Andhra Pradesh SET (APSET)