EXAMINATION OF GLOBALIZATION AND ECONOMIC GROWTH IN NIGERIA
- Project Research
- 1-5 Chapters
- Quantitative
- Regression
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
EXCERPT FROM THE STUDY
The Heckscher–Ohlin model (H–O model) is a mathematical model of international trade, which states that every country has access to the same technology. They can produce different goods with same technology using one fixed factor (labour) and a varying factor (capital) on a perfect competitive condition and constant returns to sale(Bond, Kazumichi, & Kazuo, 2012). Heckscher-Ohlin in his theory, state that comparative factors of the objects of production, which are land, labour, and capital, prove a country's relative skills. Countries tend to benefit from items that sufficiently have the necessary bases of creation in their neighbourhood, given that the profitability of items will depend on income charges. It will be easier to produce goods that require raw materials that are readily available and abundant locally than the goods that their materials are locally scarce and require their materials to be imported. For instance, If a countries has lands and capital in abundant while labour is scarce, they will tend to focus more on items that only require land and capital more than labour.
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