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Factor Intensity Reversal

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Jul 23, 2020
13:16

This videos discuss about the concept of factor intensity reversal. It is a phenomenon where for a given commodity; the production function differ among trading nation. That is, if production of a given commodity is intensive in given factor in one nation is found in another nation intensive in another factor. The important requirement for Heckscher–Ohlin theorem is that of absence of factor intensity reversal. If factor intensity reversal exists, H-O theorem break down and Leontief paradox will match with one of the trading country. Leontief Paradox https://youtu.be/tUlk430-dmA Heckscher-Ohilin Theorem. https://youtu.be/IjFErhxBZYc

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Factor Intensity Reversal | NatokHD