Heckscher – Ohlin – Samuelson model

The Heckscher-Ohlin-Samuelson model: theoretical basis and conditions of application

The Heckscher – Ohlin – Samuelson model provides a mathematical proof of the possibility of equalizing the relative and absolute prices for production factors in international trade with certain assumptions. However, in practice, these assumptions are not followed. Therefore, there is a need to adjust the parameters of the model by calculating the indicators of cost estimation and the use of production factors. Therefore, the purpose of the research is to generalize the theoretical provisions of the Heckscher