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The Heckscher-Ohlin Model in Modern International Trade
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Abstract
The Heckscher-Ohlin model, initially developed by Elie Heckscher and Bertil Ohlin, remains a cornerstone of international economics. This paper evaluates the model's relevance in the context of contemporary global trade dynamics, with a specific focus on how changes in relative factor abundance among countries continue to influence long-term trade patterns. By combining historical perspectives with modern insights, this study seeks to provide a comprehensive understanding of the model's applicability in today's interconnected world. While empirical research continues to validate its core principles, the study also acknowledges the complexities of real-world trade, including technological advancements, trade policies, and non-homogeneous factors of production. In conclusion, the Heckscher-Ohlin model remains an invaluable tool for understanding international trade, but its effective application requires an integrated approach that considers the multifaceted nature of today's global economy, guiding policymakers and businesses in navigating the evolving landscape of international trade.
Keywords
Heckscher-Ohlin Model, Factor Intensity Reversal, Policy Recommendations, Trade Policy
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Cite this article
Lu,R. (2024). The Heckscher-Ohlin Model in Modern International Trade. Advances in Economics, Management and Political Sciences,67,26-31.
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Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
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