Question

Explain the Hecksher Ohlin theorem of international trade.

Answer 1

It includes how to raise the capital and how to allocate capital, i.e. capital budgeting. Not only for long term budgeting, but also how to allocate the short term resources like current liabilities. It also deals with the dividend policies of the share holders.

Answer 2

The Heckscher :
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Ohlin theory culminates in what is now generally known as the Heckscher .

Ohlin theorem (HOT) of the pattern of international trade: a country exports those goods whose production is intensive in the country's relatively abundant factor and imports other goods that use intensively the country's relatively .