Answer
May 12, 2025 - 08:17 AM
The Heckscher-Ohlin (H-O) model assumes that countries have different factor endowments, such as labor and capital, and that these factors are immobile internationally but mobile domestically. It also assumes that technologies are identical across countries, and that production exhibits constant returns to scale. Additionally, the model presumes perfect competition in markets and no transportation costs or trade barriers.
