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"Mundell and Markusen each wrote classic papers on the relationship between trade and factor movement. Mundell showed that substitution holds in the Heckscher-Ohlin model. Markusen challenged the substitution result and showed in five different models that removing barriers to factor movement results in complementarity under free trade, identical factor endowments, and a change in any one of the other assumptions underlying the Heckscher-Ohlin model. The author generalizes Markusen's analysis by considering the liberalization of barriers to factor movement under any non-negative level of protection, and liberalizing trade barriers under factor mobility. He shows that (1) substitution holds at high protection levels, (2) complementarity holds at low protection levels, and (3) either substitution or complementarity hold under large tariff changes. "--World Bank web site.

Free trade --- Heckscher-Ohlin principle. --- Mathematical models.

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This paper presents conceptually correct tests of the Heckscher-Ohlin proposition that trade in commodities can be explained in terms of an interaction between factor input requirements and factor endowments. Most prior work that claims top resent tests of this hypothesis have used intuitive but inappropriate generalizations of the traditional two by two model to deal with a multidimensional reality. Moreover, prior work has in general used measurements on only two of the three variables(trade, factor input requirements and factor endowments) that are required for a proper test of the H-O theory.We derive an exact specification of the H-O interaction in a multicountry, multicommodity, multifactor world in the form of the Heckscher-Ohlin-Vanek (H-O-V) theorem which equates the factors embodied in net trade to excess factor supplies.This theorem implies sign and rank propositions analogous to those implicitly studied by Leontief, but it also implies hypotheses about the parameters linking factor contents and factor supplies. Accordingly, we conduct tests of the sign and rank propositions as well as several parametric hypotheses which permit various assumptions about measurement errors, nonproportional consumption and technological differences. Our analysis uses separately measured data on trade, factor input requirements and endowments for twenty-seven countries and twelve factors in 1967. Tests of the Leontief type sign and rank propositions sharply reject this facet of the H-O-V model. In particular, the sign of net factor exports infrequently predicts the sign of excess factor supplies and therefore does not systematically reveal factor abundance.The results from an extended set of tests conducted in a regression context reject the H-O-V hypothesis of an exact relationship between factor contents and national factor supplies. Support is found for the H-O--V assumption of homothetic preferences, but estimates of the parameters linking factor contents and factor supplies are found to differ significantly from their theoretical values. We find there is clear evidence that the departure of the estimated coefficients from their theoretical values is importantly related to differences across countries in the matrix of factor input requirements and, by implication, to violation of the assumption of factor price equalization. We also find that errors of measurement in both trade and national factor supplies are an important reason for rejection of the H-O-V hypothesis.

Input-output analysis. --- Balance of trade --- Factor analysis. --- Heckscher-Ohlin principle. --- Mathematical models.

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Comparative advantage (International trade) --- Heckscher-Ohlin principle --- 330.00 --- AA / International- internationaal --- Comparative advantage (Commerce) --- Comparative costs (International trade) --- Economische en sociale theorieën: algemeenheden --- Trade theory --- Heckscher-Ohlin-Samuelson model --- International trade --- International division of labor

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"The contributors first discuss Heckscher's efforts to forge the discipline of economic history by combining both the historian's careful evaluation of sources and the economist's rigorous models. The Heckscher-Ohlin theory of factor proportions is described and tested empirically. Contributors then apply the theory to historical material, including Mediterranean trade in Biblical times, the economic effects of two periods of plague eight centuries apart, and tariff policy in 35 countries from 1870 to 1938. Heckscher's masterly work on mercantilism, the Continental Blockade, and Swedish economic history is also described and appraised in light of recent historical research."--Jacket.

Trade theory --- Heckscher, Eli F. --- International trade --- Economic history --- Mercantile system --- Heckscher-Ohlin principle --- 382.01 --- Heckscher-Ohlin-Samuelson model --- Comparative advantage (International trade) --- Cameralism --- Kameralism --- Mercantilism --- Balance of trade --- Economic policy --- Economic conditions --- History, Economic --- Economics --- External trade --- Foreign commerce --- Foreign trade --- Global commerce --- Global trade --- Trade, International --- World trade --- Commerce --- International economic relations --- Non-traded goods --- Heckscher, Eli Filip, --- Economic history. --- Electronic books. -- local. --- Heckscher, Eli F. -- (Eli Filip), -- 1879-1952. --- Heckscher-Ohlin principle. --- International trade. --- Mercantile system. --- Business & Economics --- International Commerce --- Mercantilism (Mercantile system) --- ECONOMICS/Trade & Development --- HUMANITIES/Biography & Autobiography

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What is the best configuration for a global production network? What are the different dynamics in low-cost vs. high-cost countries? Getting the answers right is key to building a competitive and efficient global production network. Centers of economic activity are shifting profoundly, globally and even regionally. Production is shifting even more dramatically than the economy as a whole, making it critical for decision makers to know what criteria matter most and how to make the right decisions on where to invest. Regardless of the industry involved, an optimized global footprint can translate to a competitive advantage. A comprehensive redesign typically yields a 20 to 40 percent reduction in manufacturing costs. Global production and purchasing operations create a platform for entry into new markets. Planning and implementing a sustainable globalization strategy, however, takes considerable effort; this book is there to help in that task. The wealth of experience and analysis featured in Global Production is the result of an extensive survey among leading manufacturing companies as well as countless discussions with executives who have personally wrestled with the issues of "going global." In breadth and depth, the insights it offers surpass what a manager or most individual companies could acquire on their own.

International business enterprises --- Production management. --- Comparative advantage (International trade) --- Management. --- Manufacturing management --- Industrial management --- Comparative advantage (Commerce) --- Comparative costs (International trade) --- International trade --- Heckscher-Ohlin principle --- International division of labor --- Industrial engineering. --- Operations Management. --- Industrial and Production Engineering. --- Administration --- Industrial relations --- Organization --- Management engineering --- Simplification in industry --- Engineering --- Value analysis (Cost control) --- Production engineering. --- Manufacturing engineering --- Process engineering --- Industrial engineering --- Mechanical engineering