The Heckscher-Ohlin Theory (With Criticisms) | International Economics
In this article we will discuss about:- 1. Heckscher-Ohlin Theory of International Trade 2. Superiority of Heckscher-Ohlin Theory over the Classical Theory 3. Criticisms. The classical comparative costs theory developed by Adam Smith, Ricardo and Mill maintained that comparative cost advantage of the trading countries was based on the differences in the productivity of labour (single factor) but they failed [...]