Definition: Heckscher–Ohlin Theorem

Heckscher–Ohlin Theorem - related to factor proportions theory, "the theory of Heckscher and Ohlin that shows that a nation gains from trade by exporting the commodity whose production requires the country’s relatively abundant (and cheap) factor of production and importing the good whose production requires the intensive use of the relatively scarce factor." - source: Economic Development 4th Edition by E. Wayne Nafziger

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