"The Heckscher-Ohlin Trade Theory is about how two countries can
get greater gains from trading with each other if they have
different resources – one have more labor and the other have more
capital (that is technical equipment and machinery).
By specializing in production, and by trading with other
countries, it is possible for countries to increase their incomes.
Even though countries as a whole benefit from specialization and
international trade, all groups in society, workers and
capitalists, do not gain according to the Heckscher-Ohlin theory.
If international trade leads a country to specialize in producing
goods that require lots of workers and little capital, such a
specialization increases wages (which benefits the workers) but
decreases the income of the capital owners. But the country as a
whole benefits because the gain of the workers is bigger than the
loss of the capital owners.
The Trade Ruler game is set in "the Hechscher-Ohlin world" you
are to make an island (a country) prosper by trading. As a ruler of
an island you want to engage in international trade to achieve this
goal" (Nobel Media, 2011). Click link in upper left corner.
After playing the game (estimated to last about 15 minutes),
answer the following questions in the form of a short essay.
Your completed essay should be at least 250 words in length:
1. Did your selected country have more labor or capital?
2. Why did you select this particular country?
3. Did your selected trading partner have more labor or capital?
4. Why did you select this particular trading partner?
5. Did you increase or decrease the welfare of your country by engaging in international trade? Why?
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.