Question

Critically examine the Heckscher-Ohlin theory of International Trade.

Answer 1

Answer:

is now known as the Heckscher-Ohlin theory. The Heckscher-Ohlin theorem states that if two countries produce two goods and use two factors of production (say, labour and capital) to produce these goods, each will export the good that makes the most use of the factor that is most abundant.