Answer
May 12, 2025 - 08:17 AM
The Heckscher-Ohlin (H-O) model is an economic theory that explains international trade patterns based on differences in countries' factor endowments, such as labor and capital. It posits that a country will export goods that require abundant and cheap factors of production and import goods that require factors that are scarce and expensive domestically. This model emphasizes how countries benefit from trade by specializing in the production of goods that utilize their most abundant resources efficiently.
