Heckscher Ohlin Theorem Homework Help

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Heckscher Ohlin theorem or the H-O model is signified as a general equilibrium, which defines mathematical model of international trade. This theorem was formulated by Bertil Ohlin and Eli Heckscher at the Stockholm School of Economics. It was derived from David Ricardo’s comparative advantage theory by predicting growing trends of production and commerce through factor endowments of a country or a region. In simpler words, the model talks about the export of those products that a country has in abundance and the import of those products which it is scarce of.

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