According to the heckscher-ohlin theorem, trade arises are due to

Question

Business

Guest

3 November, 20:29

According to the heckscher-ohlin theorem, trade arises are due to

+5

Answers (1)

Know the Answer?

Adriel Black · Answer 1

According to the heckscher-ohlin theorem, trade arises are due to Differences in relative factor endowments and intensities.

Differences in relative factor endowments and intensities will create a different in prices between one nation and another. This difference will create a leverage for each nation to trade with one another in order to use their resource more efficiently.