What is the specific H O model, and what is the relationship between the new element theory and the

The H-O theory (i.e., Heckscher-Ohlin theory) is based on the distribution of factors, emphasizing the decisive role of different factor endowments and different production functions of different commodities in various countries and regions. Factor cooperative FDI is an extension of this theory, and its basic principle is to transfer the combination of immovable and immobile factors to improve the utilization efficiency of various production factors.

The composition of the elements is different: H-O model: two elements, labor and land, can move freely in one's own country, but cannot move across borders.

Two products are produced: cotton and grain, and the supply of both factors is limited. The specific element model is two countries, two products, and two factors.

Moreover, there is one element that is fixed and cannot flow freely. The extended type has three factors of production, namely labor, capital and land, and produces two kinds of goods: manufactured goods and grain, and only land and labor are required to produce food, and capital and labor are required to produce manufactured goods.

Comparative advantage** is the same: the specific element model is due to the different abundance of factors, and the ho model is due to the difference in the relative abundance of resources. Opportunity costs are all incremental:

There are two elements in the HO model, each suitable for different departments, so the opportunity cost is incremental. The opportunity cost in the specific factor model is also incremental, because there is only one flow factor, and its marginal product is decreasing, so when the labor force that produces x is continuously released to produce y, as the output of y increases and the output of x decreases, the marginal product of y decreases and the marginal product of x increases, so that the opportunity cost of producing y gradually increases, that is, the production possibility boundary is convex.

Judging from China's fiscal revenue in April, China's economic growth has slowed down significantly, the per capita consumption level has declined, and some prices have slowed down, but some food products have increased. Because the economic growth rate is lower than expected, the loan policy and interest rate cuts are relaxed to save the market.

Factor endowment theory: capital-intensive products, labor-intensive products, capital-rich countries, labor-rich countries.

If a country is capital-rich, it concentrates on the production and export of capital-intensive products; If a country is a labor-intensive country, it concentrates on the production and export of labor-intensive products.

The basis for determining the production and mode of production of the two countries is the comparative advantage in production costs, and this comparative advantage is determined by factor endowments. Capital-rich countries have a comparative advantage in the production of capital-intensive products, and in the event of international **, the country will increase the production of capital-intensive products and increase its exports, and conversely, it will reduce the production of labor-intensive products and increase its imports. In the event of an international event, the country will increase the production of labor-intensive products and increase its exports, while it will reduce the production of capital-intensive products and increase its imports.