Trade and Resources : Heckscher- Ohlin Model

Factor Proportions Model Big Questions: 1. How do differences in factor endowments determine the pattern of trade? 2. How can international trade make some people within a country better off while making others worse off? Little Questions: 1. What is the Stolper-Samuelson Theorem and what does it mean? 2. What is the Rybczynski Theorem and what does it mean? 3. What is the Heckscher-Ohlin Theorem and what does it mean? 4. What do we mean by gains from trade even though there are winners and losers within a country? 5. What do we mean by virtual trade? 6. What do we mean by factor price equalization?