relationship between heckscher-ohlin's work and the theory o
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relationship between heckscher-ohlin's work and the theory of comparative advantage?
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Heckscher and Ohlin argued that comparative advantage arises from differences in national factor endowments(the extent to which a country is endowed with resources such as land,labor,and capital)
The more abundant a factor,the lower its cost.
Countries will export goods that are locally abundant,and import goods that make intensive use of factors that are locally scarce.
The more abundant a factor,the lower its cost.
Countries will export goods that are locally abundant,and import goods that make intensive use of factors that are locally scarce.
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