a general equilibrium mathematical model of international trade, developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics; countries will export products that use their abundant and cheap factor(s) of production and import products that use the countries' scarce factor(s)
In the case of globalisation, what lies behind is the standard international trade model (usually referred to as the Heckscher–Ohlin model after the two Swedish economists Eli Heckscher and Bertil Ohlin), according to which the classes of workers, skilled and unskilled, are employed in two perfectly competitive economies, each with two sectors of production.
notable
7 years, 7 months ago