The Heckscher-Ohlin Theorem

This video covers how differences in factor endowments affect trade, as is demonstrated through the Heckscher-Ohlin Theorem. Under some simple assumptions, the models discussed in this video demonstrate that capital-intensive countries will export capital-intensive products, and labor-intensive countries will export labor-intensive products. For more on the models discussed in this video, see the textbook "International Trade" by Robert Feenstra and Alan Taylor.