international trade

INTERNATIONAL TRADE (EC549) EDI HOUADRIA ESSAY #1 Subject #2: Does the Leontief paradox invalidate the Heckscher-Ohlin model of trade? Why and how countries trade has always been a difficult and capital question for economists. The Ricardian model explained trade patterns through differences in labour productivity, however international trade can only partially be explained this way. It has also been wildly believed that resource allocation also plays a vital role in how nations trade, Heckscher-Ohlin (H-O), two Swedish …showed first 75 words of 1396 total…

…showed last 75 words of 1396 total…it mainly to north-south trading, it also helps put into perspective the true role of labour skill in trade patterns as well as the role of technology. The H-O model is not the truth but simply an instrument that can give us an idea what the big picture is. Bibliography Bibliography -P.Krugman, “International Economics”, International Edition. -A.Wood, “Give Hecksher and Ohlin a Chance”, SLC. -W.Staiger “An evaluation of factor endowments and…”,SLC