Heckscher-Ohlin theorem

They are Heckscher-Ohlin theorem and The Ricardian theory of international trade.

As such, Ottoman borrowings followed the Heckscher-Ohlin theorem.

The Heckscher-Ohlin theorem is one of the four critical theorems of the Heckscher-Ohlin model.

However, if labor is separated into two distinct factors, skilled labor and unskilled labor, the Heckscher-Ohlin theorem is more accurate.

The Heckscher-Ohlin Theorem, which is concluded from the Heckscher-Ohlin model of international trade, states: trade between countries is in proportion to their relative amounts of capital and labor.

For many economists, Leontief's paradox undermined the validity of the Heckscher-Ohlin theorem (H-O) theory, which predicted that trade patterns would be based on countries' comparative advantage in certain factors of production (such as capital and labor).

The best-known of the resulting models, the Heckscher-Ohlin theorem (H-O) depends upon the assumptions of no international differences of technology, productivity, or consumer preferences; no obstacles to pure competition or free trade and no scale economies.

The Leontief paradox, presented by Wassily Leontief in 1951, found that the U.S. (the most capital-abundant country in the world by any criterion) exported labor-intensive commodities and imported capital-intensive commodities, in apparent contradiction with the Heckscher-Ohlin theorem.

The model provided a basis for later work on the effects of protection on real wages, and has been fruitful in producing predictions and analysis; Ohlin himself used the model to derive the Heckscher-Ohlin theorem, that nations would specialize in industries most able to utilize their mix of national resources efficiently.