Heckscher-Ohlin theory of international trade begins where the Ricardian theory of international trade ends. Elucidate.
The Heckscher-Ohlin (H-O) theory of international trade builds upon and extends the insights of the Ricardian theory, offering a more nuanced explanation of trade patterns. While David Ricardo's theory focused on comparative advantage arising from differences in technology and productivity, the H-O theory incorporates the role of factor endowments, emphasizing the significance of capital and labor in production.
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