Trade Lesson 3 Global Trade Theory II: The Heckscher-Ohlin Model of Comparative Advantage
  
 
 
 
Trade Lesson 3 Global Trade Theory II: The Heckscher-Ohlin Model of Comparative Advantage

Overview

This lesson helps understand the Heckscher-Ohlin model of comparative advantage based on differences in resource endowments, and the relevant concepts and tools: the curved production possibility frontier, production and consumption decisions, and gains from trade.

Relevant Learning Objectives

3. Understand the Heckscher-Ohlin model of comparative advantage based on differences in resource endowments, and the relevant concepts and tools: the curved production possibility frontier, production and consumption decisions, and gains from trade.

Procedure

Pre-Class Assignments

  • Students should read Chapters 4 of the textbook

Possible Classroom Activities

Resources

  • Global Trade Lesson 3.pptx
  • Krugman, P.R., and Obstfeld, M. (2008). Resources, Comparative Advantage, And Income Distribution. In International Economics: Theory & Policy, 8th Edition, Pearson-Addison-Wesley. (pp 54-87). Boston: Pearson.

 

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