Understanding Heckscher-Ohlin Theory: How Do Countries Decide What to Export and Import?

The Heckscher-Ohlin theory is a fundamental principle in international trade theory. It posits that countries will export goods that require factors of production in which they are well endowed and import goods that require factors of production in which they are less well endowed. This theory helps explain patterns of trade between countries based on their relative factor endowments.

Dear Mahesh,

Thanks for the PPT which will make people reminiscent of their MBA or MA (Eco) days of studying Macro-Economics. Curves and lines make the study of economics all the more interesting. But I guess this topic may not be very interesting to HRs; please post something on 'Labour and Employment'.

Regards.