It assumes that identical constant-returns-to-scale technologies with some factor suitability and homothetic tastes for substitutable goods lead to the prevailing of perfect competition when transport costs and artificial barriers are removed. National factor endowments and the relationship between factor prices and output changes are variables add
It assumes that identical constant-returns-to-scale technologies with some factor suitability and homothetic tastes for substitutable goods lead to the prevailing of perfect competition when transport costs and artificial barriers are removed. National factor endowments and the relationship between factor prices and output changes are variables addressed by its Rybczynski and Stolper-Samuelson Theorems. This model attempts to explain the development of factor-price equalization between two countries and its predictions are famously violated in Leontief's paradox. For ten points, name this model linking rising international trade and income gaps, named for two Swedes.
It assumes that identical constant-returns-to-scale technologies with some factor suitability and homothetic tastes for substitutable goods lead to the prevailing of perfect competition when transport costs and artificial barriers are removed.
Heckscher-Ohlin Model or Framework