Question

Heckscher-Ohlin theory of international trade begins where the Ricardian theory of international trade ends. Elucidate.

20 Oct 2021
Answer :
Word Count : 429

The Heckscher-Ohlin theory of international trade builds upon and extends the insights of the Ricardian theory, introducing additional factors that shape comparative advantage and trade patterns between countries. Developed by economists Eli Heckscher and Bertil Ohlin in the early 20th century, the Heckscher-Ohlin model addresses some of the limitations of the Ricardian model and provides a more realistic framework for understanding the determinants of international trade.

The Ricardian theory of comparative advantage, proposed by David Ricardo, is based on differences in labor productivity between countries. _______ ___ _______ __________ ______ __________ _______ ___.
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