Heckscher-Ohlin theory (a) Explain what is meant in the Heckscher-Ohlin theory by (i) The relative factor intensity of a commodity, (ii) the relative factor abundance of a country (b) How are these...

Heckscher-Ohlin theory

(a) Explain what is meant in the Heckscher-Ohlin theory by

(i) The relative factor intensity of a commodity,

(ii) the relative factor abundance of a country

(b) How are these concepts used to explain the commodity

composition of trade?

(c) Demonstrate that under this analysis commodity movement

and factor movement are substitutes for each other