The Heckscher-Ohlin Theory of International Trade Under Uncertainty
One of the most fundamental issues in international trade theory concerns the determination of a country’s pattern of trade. The problem is to determine what goods a country will export or import. Stated differently, is it possible to prognosticate a country’s configuration of importables or exportables just by examining the characteristics of its closed economy? The answer to this question defines not only a country’s trade pattern but also the basis for the very presence of international trade. In other words, the explanation for the trade pattern is also, in general, an explanation for why a country trades at all.
KeywordsInternational Trade Home Country Pure Theory International Trade Theory Physical Definition
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