International Trade Theory and Policy
by Steven M. Suranovic

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CHAPTER 60
The Heckscher-Ohlin (Factor Proportions) Model

Table of Contents

60-0
60-1

Chapter Overview
H-O Model Assumptions

60-1A
60-1B
60-1C

Market Structure
Production
Fixed versus Variable Proportions

60-2

60-3
60-4
60-5
60-6
60-7

60-8
60-9

60-10

60-11

60-12

60-13
60-14

The Production Possibility Frontier (Fixed Proportions Case)
The Rybczynski Theorem
The Magnification Effect for Quantities
The Stolper-Samuelson Theorem
The Magnification Effect for Prices
Production Possibility Frontier (Variable Proportions Case)
The Heckscher-Ohlin Theorem
Depicting a Free Trade Equilibrium in the H-O Model
National Welfare Effects of Free Trade in the H-O Model
Production and Consumption Efficiency Gains from Free Trade
The Distributive Effects of Free Trade in the H-O Model
The Compensation Principle
Factor-Price Equalization

Problem Sets

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

LEVEL 1
Jeopardy T60-1

LEVEL 2
Problem Set T60 2-1
Problem Set T60 2-2
Problem Set T60 2-3

LEVEL 3
Problem Set T60 3-1

Answer Keys

Download Answer Keys

Answer keys to the problem sets are avalable in Adobe Acrobat PDF format for easier viewing and printing. .

Related Links

Bertil Ohlin's Autobiography
the 1977 Nobel Prize winner writes about his life.

The Leontief Paradox
Kwan Choi's comprehensive discussion of the famous trade paradox.

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Photo of a Famous Trade Theorem
Wolfgang Stolper and Paul Samuelson brought to you by Alan Deardorff