The Heckscher-Ohlin model is an alternative to the classical theory of international trade that focuses on the factors of production that countries possess.

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The Heckscher-Ohlin model is indeed an alternative theory of international trade that emphasizes on the factor endowments of countries, such as capital, labor, land and natural resources, to explain their comparative advantage and patterns of trade. In contrast, the classical theory of trade was based on the concept of absolute advantage, which implies that countries should specialize in producing and exporting goods that they can produce more efficiently or at a lower opportunity cost than other countries, regardless of their factor endowments.

The Heckscher-Ohlin Model Is an Alternative to the Classical Theory