GLOBE International Trade Theory & Policy
by Steven M. Suranovic Chapter 60
The Heckscher-Ohlin (Factor Proportions) Model


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Table of Contents

60-0 Chapter Overview
60-1 H-O Model Assumptions
  60-1a Market Structure
  60-1b Production
  60-1c Fixed versus Variable Proportions
60-2 The Production Possibility Frontier (Fixed Proportions Case)
60-3 The Rybczynski Theorem
60-4 The Magnification Effect for Quantities
60-5 The Stolper-Samuelson Theorem
60-6 The Magnification Effect for Prices
60-7 Production Possibility Frontier (Variable Proportions Case)
60-8 The Heckscher-Ohlin Theorem
60-9 Depicting a Free Trade Equilibrium in the H-O Model
60-10 National Welfare Effects of Free Trade in the H-O Model
60-11 Production and Consumption Efficiency Gains from Free Trade
60-12 The Distributive Effects of Free Trade in the H-O Model
60-13 The Compensation Principle
60-14 Factor-Price Equalization

DOWNLOAD Chapter 60 in PDF format.


Problem Sets
LEVEL 1: Basic Definitional
LEVEL 2: Basic Intermediate
LEVEL 3: Advanced Intermediate

LEVEL 1

Jeopardy 60-1

LEVEL 2

Problem Set 60 2-1
Problem Set 60 2-2
Problem Set 60 2-3

LEVEL 3

Problem Set 60 3-1


Answer Keys

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©1997-2006 Steven M. Suranovic, ALL RIGHTS RESERVED
Last Updated on 1/3/06
HOW TO CITE THIS PAGE
Suranovic, Steven, "International Trade Theory and Policy: The Heckscher-Ohlin (Factor Proportions) Model," The International Economics Study Center, © 1997-2006, http://internationalecon.com/v1.0/ch60/ch60.html.