Archive | The Heckscher-Ohlin Theory

The Heckscher-Ohlin Theory (With Criticisms) | International Economics

In this article we will discuss about:- 1. Heckscher-Ohlin Theory of International Trade 2. Superiority of Heckscher-Ohlin Theory over the Classical Theory 3. Criticisms. The classical comparative costs theory developed by Adam Smith, Ricardo and Mill maintained that comparative cost advantage of the trading countries was based on the differences in the productivity of labour (single factor) but they failed [...]

By Aahana S|2018-03-15T11:34:37+05:30March 15, 2018|The Heckscher-Ohlin Theory|Comments Off

The Leontief Paradox to Heckscher-Ohlin Theory | Economics

In this article we will discuss about:- 1. Introduction to the Leontief Paradox 2. Loentief Paradox and Evidence Related to Other Countries 3. Reconciliation 4. Criticisms. Introduction to the Leontief Paradox: The Heckscher-Ohlin theorem gave a generalisation that the capital-abundant counties tend to export capital-intensive goods while labour- abundant countries tend to export the labour- intensive goods. W.W. Leontief put [...]

By Aahana S|2018-03-15T11:34:36+05:30March 15, 2018|The Heckscher-Ohlin Theory|Comments Off