Teori Perdagangan Internasional | Teori Hetscher Ohlin

Summary

This lecture covers the Heckscher-Ohlin (HO) theory of international trade, explaining how countries specialize in producing and exporting goods based on their abundant factors of production, like labor or capital. Developed by Heckscher and Ohlin, the theory asserts that a country will export goods that use its abundant factors intensively and import goods requiring scarce factors. The lecture also addresses key assumptions of the model and highlights its limitations, such as its unrealistic assumptions of perfect factor mobility and equal technology. Real-world complexities, such as technological differences and trade imbalances, are also discussed, illustrating the theory's challenges in today's global trade.

Takeaways

• 😀 The Heckscher-Ohlin (HO) theory of international trade is based on the differences in factor endowments (capital and labor) between countries, explaining trade patterns.
• 😀 According to the HO theory, countries export goods that use their abundant and cheap factors of production, while importing goods that require scarce and expensive factors.
• 😀 The theory was developed by Eli Heckscher in 1919 and later expanded by his student Bertil Ohlin in the 1930s, becoming a key modern trade theory.
• 😀 The theory assumes that there are two countries, two goods, and two factors of production: labor and capital.
• 😀 A key assumption of the theory is that technology is the same in both countries, which can be a limitation when considering real-world variations in technological development.
• 😀 The HO theory assumes that factors of production (capital and labor) are mobile within countries, but cannot move between countries.
• 😀 The theory suggests that countries will specialize in producing goods that are intensive in the factors of production they have in abundance, leading to international trade.
• 😀 The model also assumes that there are no transportation costs or trade barriers, which is unrealistic in the real world.
• 😀 A limitation of the HO theory is that it assumes a simple pattern of trade between countries, which often does not match real-world trade dynamics, particularly between developing and developed countries.
• 😀 Technological disparities between countries disrupt the expected patterns of trade predicted by the HO theory, as advanced technologies in developed countries can lower production costs and shift trade dynamics.
• 😀 In practice, countries like Indonesia, with abundant labor, may find it more profitable to import capital-intensive goods (like machinery) from industrialized countries rather than producing them domestically, even though they have the factors needed for production.

Q & A

What is the Heckscher-Ohlin theory of international trade?

The Heckscher-Ohlin theory explains that countries export goods that require intensive use of factors of production (labor or capital) that are abundant and cheap in that country, while importing goods that require factors which are scarce and expensive in their own country.

Who developed the Heckscher-Ohlin theory?

The Heckscher-Ohlin theory was developed by Eli Heckscher in 1919 and later expanded by his student Bertil Ohlin in 1933.

What are the key assumptions of the Heckscher-Ohlin theory?

The key assumptions are: two countries, two goods; factor intensities; perfect factor mobility within countries; no transport costs or trade barriers; identical technologies across countries; and two factors of production (labor and capital).

How does the Heckscher-Ohlin theory explain international trade?

The theory suggests that countries specialize in producing goods that use their abundant and cheap factors of production and then trade with other countries. This leads to mutual gains by allowing countries to access goods they cannot produce efficiently.

What role does factor abundance play in international trade according to the Heckscher-Ohlin theory?

Countries with abundant labor will export labor-intensive goods, while countries with abundant capital will export capital-intensive goods. The abundance of a factor makes it cheaper and more effective to use in production, influencing what goods a country produces and exports.

What is the concept of factor intensity in the Heckscher-Ohlin theory?

Factor intensity refers to how much labor or capital is used in the production of a good. In the Heckscher-Ohlin theory, countries produce goods that are intensive in the factors they have in abundance.

What are the main criticisms of the Heckscher-Ohlin theory?

Main criticisms include the unrealistic assumptions, such as identical technologies across countries, perfect factor mobility, and the lack of transport costs. Additionally, the theory does not account for technological differences and real-world imbalances in trade patterns.

Why is the Heckscher-Ohlin theory considered too simplistic in real-world applications?

The theory assumes equal technology and no barriers to trade, which doesn't align with real-world conditions. It overlooks technological disparities between countries, as well as issues like trade restrictions and differences in resource management.

What is the implication of the 'factor endowment' theory in international trade?

The factor endowment theory implies that a country's trade patterns are largely determined by its availability of resources. Countries export goods that use their abundant factors and import goods that require factors they lack.

How does technological innovation affect the predictions of the Heckscher-Ohlin theory?

Technological innovation can give certain countries an edge in producing goods more efficiently, even if they do not have an abundance of the required factors of production. This makes the real-world application of the theory more complex, as countries with advanced technology can sometimes dominate trade, even if they lack factor endowments.