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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1190 |
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It emphasizes on comparative advantage of each country in producing a product. Perhaps it is the most important concept in international trade theory. In a Ricardian model, countries specialize in producing what they produce best.
Another theory produced, is The Heckscher-Ohlin model theory. It was provided as an alternative to Ricardian model...
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It was provided as an alternative to Ricardian model. The theory argues that the pattern of international trade is determined by differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce...
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