The Specific Factor Model of Trade | International Economics

In this article we will discuss about the specific factor model of trade. Single Specific Factor Case: The Heckscher-Ohlin factor endowment theory was put into doubt by the Leontief Paradox. Another objection against the validity of the H-O theory was raised by Stephen Magee. An assumption has been taken in the H-O theory that the factors of production are perfectly [...]