Try to compare the similarities and differences of factor endowment theory and comparative advantage

The factor endowment theory explains the difference between the products between the two countries before the occurrence of the factor from the perspective of factor and factor combination ratio. The difference in the cost of factors is ultimately the difference of goods, and this difference is a difference in advantages, which is the basis of international standards.

1. Factor endowment theory.

Answer: The basic content of factor endowment theory is that a country or region exports those goods that intensively use the country's most abundant factors of production in production; Imports are for those commodities whose production intensively uses the factors of production that the country feels most lacking. The factor endowment theory is a great progress on the basis of the theory of comparative advantage, and it has its reasonable components and significance for reference.

The theory of comparative advantage assumes that the exchange between the two countries is an exchange of goods, and the international exchange is caused by the difference in labor productivity, while Heckschel and Ohlin compare the proportions of different commodities in the two countries with different currencies (costs) of the same amount of products, and the exchange between the two countries is a currency exchange. Assuming that the factor productivity of all countries is the same, the difference in factor endowment is used to seek to explain the reasons for the emergence of international factors and the impact of international commodity structure and international factors on factors, and the research is more in-depth and comprehensive.

The basic content of factor endowment theory is that a country or region exports those goods that intensively use the country's most abundant factors of production in production; Imports are for those commodities whose production intensively uses the factors of production that the country feels most lacking. The factor endowment theory is a great progress on the basis of the theory of comparative advantage, and it has its reasonable components and significance for reference.

The theory of comparative advantage assumes that the exchange between the two countries is an exchange of goods, and the international exchange is caused by the difference in labor productivity, while Heckschel and Ohlin compare the proportions of different commodities in the two countries with different currencies (costs) of the same amount of products, and the exchange between the two countries is a currency exchange. Assuming that the factor productivity of all countries is the same, the difference in factor endowment is used to seek to explain the reasons for the emergence of international factors and the impact of international commodity structure and international factors on factors, and the research is more in-depth and comprehensive.

1. The assumptions are different.

1) The assumption of absolute difference is that only two countries in the world can produce two products, and that one country is more productive on the same product than the other, and the other country is more productive on the other product;

2) The theory of comparative advantage, on the other hand, states that the labor productivity of both products in one country is higher than that of the other, and on this basis, the two theories explain the international division of labor.

2. The content and method of comparison are different.

The absolute difference theory compares who is better and who is inferior among the two, while the comparative advantage theory is "the weight of the two advantages and the lesser of the two disadvantages." ”

3. The scope of application is different.

1) The theory of absolute difference can only show that the labor productivity of each country is higher than that of other countries in the production of a certain product or a certain number of products, and the division of labor can be formed; The theory of comparative advantage can also explain the reason why international ** is established when the labor productivity of a country is higher than that of other countries in the production of all products;

2) that is, taking into account the relative technological advantage, which also has its own limitations, since this theory takes into account only the input of the productive forces in its assumptions, and considers the transfer of labor labor productivity unchanged, as well as the international division of labor from a static point of view.

Absolutely.

The theory was founded by Adam Smith, and on the basis of the theory of absolute advantage, Ricardo proposed the theory of comparative advantage. However, the difference between the two lies in the "absolute" and "comparison", that is, Adam Smith believed that the economic subjects (countries) of society should implement the division of labor according to their own specialties, carry out specialized production, and then carry out ** through the international market, so as to realize their absolute interests; Ricardo, on the other hand, believed that countries with absolute superiority should concentrate on the production of commodities with greater advantages, and countries at absolute disadvantages should concentrate on the production of commodities with less disadvantage, so as to achieve relative and comparative benefits. The factor endowment theory is proposed in response to the defect of the Ricardian model that labor is the only factor of production.

How can I have an international ** book, and I can just check it in the library?

Answer]: Discuss from the assumptions, theoretical content, etc. (1) The basic assumptions of the H-O theory differ from Ricardo's theory of comparative interests in the following aspects.

Ricardo believed that the value of commodities is determined by the labor time spent producing them, while the Her-Russian model assumes that commodities cannot be produced by a single factor, and that other factors such as capital and land are also indispensable in production; Ricardo believed that the principle of the exchange of equal labor within the country could not be applied in the international market, while the Herd-Russian model implied that the domestic and international exchanges of goods between different regions were essentially the same; Ricardo believes that the main reason for the emergence of international ** is the difference in labor productivity of various countries, while the Herd-Russian model assumes that all countries have the same production technology and production function, and that the same factor of production has the same labor productivity. (2) From the analysis of theoretical content, the difference between the two lies in the explanation of the foundation and the model. Theory of Comparative Advantage:

Under the condition that both countries can produce the same two products, if one of the countries is more productive in the production of both products than the other, that country can specialize in the production of the product with the greater advantage, and the other country in the inferior position can specialize in the production of the product with the less disadvantage. Factor endowment theory: In the international world, a country's comparative advantage is determined by its factor abundance.

A country should produce and export products that use more abundant factors of production and import products that use factors of production more intensively that use its scarcer factors of production.

1.+ Talk about your understanding of factor endowment theory in relation to the theory of comparative advantage. Which of the riddles do you agree with?

In fact, these studies after Leontief on the one hand preserve the "mystery" but on the other hand also solve the mystery. The mystery continues to exist because people use the same methods as Leontief. As long as we calculate the simple ratio of capital to labor, the United States will continue to appear to be an exporter of labor-intensive goods, and the "mystery" will exist.

But if we analyze the current situation of the United States on a case-by-case basis, or test it with data from outside the United States, we can see that the Leontief mystery does not really disprove the Heckscher-Ohlin theory. **Economists, driven by the results of Leontief, have identified a number of important factors that appear to explain the results of these empirical tests. At the same time, they made many improvements to the original simple interpretation of the Heckscher-Ohlin model.

In order of importance, from least important to most important, economists have the following five main explanations for this mystery: afactor-intensive reversal; b.

Demand reversal c**Rampart; d.skills and human capital; e.

Natural resources. 1.Factor Intensity Reverses The basic assumption of factor intensity in the Heckscher-Ohlin** model is that if one commodity is more capital-intensive than another commodity at a certain ratio of factors of production**, then that commodity is more capital-intensive than another commodity at all ratios of factors of production**.

In other words, if toys are a labor-intensive hailstorm commodity at China's relative wages, then toys are also a labor-intensive commodity at the U.S. relative wages, even though relative wages in the U.S. will be higher than in China. However, this may not be the case with the facts. Assuming that labor is relatively scarce in the United States due to the abundance of capital, capital is cheap and labor is expensive, the United States may use more capital than labor in toy production.

In this way, toys have become capital-intensive in the United States, while in the rest of the world, toys are still labor-intensive because capital is more expensive and labor is cheaper. This is a case of factor-intensive reversal. In this case, the result could be:

U.S. exports commodity a, which is capital-intensive in other countries but labor-intensive in the United States; At the same time, the U.S. imports commodity B, which is labor-intensive in foreign countries and capital-intensive in the United States. Under some factors, X is capital-intensive and Y is labor-intensive, but under others, X becomes labor-intensive and Y becomes capital-intensive. 2022 Master of International Business International** Theory Factor Endowment Theory (2) Diagram Factor Intensity ReversalBecause Leontief calculates the factor density of imported goods when they are produced in other countries according to the technical conditions of the United States, this may cause misunderstanding in the case of factor density reversal.

According to the H-O theory (factor endowment theory), if countries have the same preferences, they have a strong advantage.

a.Depends only on the condition of the feature.

b.It only depends on the demand situation of the positive regret bridge element before the loss.

c.It is determined by the supply and demand of factors at the same time.

d.Can't be sure.

Correct answer: Depends only on the condition of the feature.

10. What is the factor endowment theory of comparative advantage? Smith and the Ricar+ graph model think what.

The theoretical premise of the theory of comparative advantage is that the theory of comparative advantage is based on a strict theoretical precursor: two countries, two products, or two factors; There is some kind of difference between countries; The comparative interests of countries are static and constant, and there are no economies of scale; Freedom is carried out under a perfectly competitive market structure, in the form of barter; Factors of production can move freely within a country, but not between two countries; Technological progress, capital accumulation and economic development do not exist.