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Analysis of the Hecksher-Ohlin Model

Author

Listed:
  • Mihaela Carmen Muntean

    (Dunarea de Jos University of Galati, Romania)

Abstract

The Hecksher-Ohlin theory is a theory of a long-term general balance where the two factors of production taken into account, namely work and capital, are interchangeable among the fields of activity. This theory considers that the relative advantage of each country depends on the combination of the production factors (capital, work, nature) which ensure a proportion which is comparatively or relatively higher than the more abundant factor and, therefore which may allow a production cost, which is relatively or comparatively low of the merchandise to be exported.

Suggested Citation

  • Mihaela Carmen Muntean, 2005. "Analysis of the Hecksher-Ohlin Model," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 33-38, JUNE.
    • Handle: RePEc:ddj:fseeai:y:2005:i:1:p:33-38
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