Archive | Heckscher-Ohlin’s Theory

Let us make in-depth study of the Heckscher-Ohlin’s theory of international trade. Introduction: The classical comparative cost theory did not satisfactorily explain why comparative costs of producing various commodities differ as between different countries. The new theory propounded by Heckscher and Ohlin went deeper into the underlying forces which cause differences in compara­tive costs. They explained that it is differences [...]