Question

Discuss the statement "No country is abundant in everything." from the perspective of the Heckscher-Ohlin Model.

Answer 1

ANSWER:-

The statement "No country is abundant in everything." from the perspective of the Heckscher-Ohlin Model.

• This idea is identified with the hypothesis of Hecksher Ohlin Model and discusses factor bounty. It is a relative idea. As per this idea, none of the nation is copious in everything i.e.excess in all things. A few countries have a few things in abundance and some different things are less.
• At the point when we think about country As a, having overabundance capital,known as capital bottomless. It implies it has overabundance capital per work than another country,
• At that point it is infrequently conceivable that it has same abundance units of work for per unit of capital. It implies this country is considered as capital inexhaustible as opposed to work abudent in light of the fact that there are less units of work when contrasted with capital.
• Think about another Country(2), which have less capital and overabundance work. It implies units of work are more than capital and is work pntiful.
• It implies every nation has diverse specialization and by utilizing that specialization, they get exchange benefits global exchanges.
• Country(1) produces and fares that item which requires abundance capital and Country(2) delivers and fares that product which requires overabundance work units.