Difference Between The John Model And The Heckscher-Ohlin Model

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1. The Heckscher-Ohlin model is a mathematical model that evaluates international trade and focuses on predicting the patterns of economics and production based on the factor endowments of a trading country and the assumption that countries have the same technologies for production. The model states that countries should export their products that use their abundant and cheap factors and import products that use their scarce factors. Meanwhile, the Ricardian model of international trade describes the difference in comparative advantage based on technological difference. This model states that a country should specialize in producing and exporting products that they can produce more efficiently at a lower opportunity cost. As for the assumptions, the models assume perfect competition in all markets, there are two trading countries, there are two good being produced, and both models represent a general equilibrium model. There are some differences; for example, HO has two factors of production (labor and capital), while Ricardian has one factor (labor). HO assumes that the only difference between the two countries is the endowments of labor and capital, while Ricardian assumes the only difference is the productivity from technological differences.
2. The Leontief Paradox relates to the Hecksher-Ohlin model because it is a contradiction to what the model states. Although the Hecksher-Ohlin model essentially describes that an abundant country with better factor endowments would

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