Page "International trade" Paragraph 17

In the early 1900s a theory of international trade was developed by two Swedish economists, Eli Heckscher and Bertil Ohlin.

This theory has subsequently been known as the Heckscher-Ohlin model ( H-O model ).

The results of the H-O model are that countries will produce and export goods that require resources ( factors ) which are relatively abundant and import goods that require resources which are in relative short supply.