Relaxing the assumptions on which the Heckscher-Ohlin theory rests:

Question

Quizplus · Accepted Answer

Relaxing the assumptions on which the Heckscher-Ohlin theory rests requires complementary trade theories to explain the phenomenon that cannot be accounted for by the Heckscher-Ohlin theory. This is because the assumptions of the Heckscher-Ohlin theory are central to its predictions, so relaxing them would lead to incomplete or inaccurate predictions that only complementary trade theories could explain.

Relaxing the Assumptions on Which the Heckscher-Ohlin Theory Rests